(Hostage Situation)
“At the start of the Environment turn, each player may discard 1 card each to destroy this card.â€
No, a player with no cards can not fufill this requirement. Therefore, every player must have at least 1 card in order to get rid of this environement.
Not reading Impending Casualty card atm, but if it says “discard to destroy” then you have to get rid of a card to destroy it. You cant not get rid of a card because you have no cards and destroy it.