Following our July update on the amendments to the Climate Change Response Act 2002, the Climate Change Response (Tort Liability) Amendment Bill (the "Bill") has now passed its third reading and awaits its Royal Assent.
The Bill introduces a statutory bar on tort liability for emissions-related climate change harm (read more about that here). The Government has previously expressed concerns that tort liability for greenhouse gas emissions is contradictory to the established regime. During the third reading, Minister of Justice Paul Goldsmith stated that "the government is better placed than the courts to consider the social, the economic, and the distributional implications of different climate change policy response".
The Bill passed its third reading by 67 votes to 53, and now proceeds to Royal Assent.
The select committee report on the Bill records the Labour Party has a differing view to the current Government and will repeal the Bill if elected to government. Labour argued that it would have been better to allow the Smith v Fonterra case to continue proceeding through the courts, with further legislative action considered only after the case was heard. It also argued there was no evidence provided that Mr Smith's case created more uncertainty for businesses than usual.
With an election approaching, the Bill's future will remain uncertain even after it becomes law. We will be following developments closely and will provide updates as they arise.
For more information, please reach out to one of our team members.
This article was co-authored by Stephen Jannink (solicitor).