The New Zealand government announced today it will amend legislation to stop companies being sued over climate change damage caused by greenhouse gas (GHG) emissions, in a move criticised by environmental groups.
The proposed changes to the Climate Change Response Act will prevent individuals or organisations from bringing civil claims against businesses under tort law, which allows people to seek compensation for harm caused by a wrongful act.
"The courts are not the right place to resolve claims of harm from climate change, and tort law is not well-suited to respond to a problem like climate change, which involves a range of complex environmental, economic and social factors," justice minister Paul Goldsmith said today.
The changes will prevent current and future court proceedings from holding companies liable for climate change damage or harm caused by GHG emissions, the government said.
This would apply to an ongoing case before New Zealand's High Court filed by a local activist against seven emitters — Fonterra, Genesis Energy, Dairy Holdings, New Zealand Steel, Z Energy, New Zealand Refining Company and BT Mining.
The case involves tort claims including public nuisance and damage to the climate system. It was struck out by the Court of Appeal in October 2021 but reinstated by the Supreme Court in February 2024 and sent back to the High Court for trial, which is due to begin in April 2027.
New Zealand's response to climate change is best managed at the national level through the Climate Change Response Act and the emissions trading system (ETS), the government claimed.
The ongoing case is "creating uncertainty in business confidence and investment", it added.
The amendments will "shield" major polluters from liability for their emissions, advocacy group Lawyers for Climate Action NZ said today.
The changes will also affect the High Court's constitutional role in developing the common law, including its ability to decide an ongoing case, it noted.
"The move is particularly troubling because it intervenes directly in an active and significant legal case," advocacy group Environmental Law Initiative (Eli) said.
Lawyers for Climate Action NZ and Eli recently brought a case before the High Court against climate change minister Simon Watts, seeking declarations that he failed to implement the country's first (2021-25) and second (2026-30) emissions reduction plans. The court's judgment is pending.
