Justice Minister Paul Goldsmith has announced today that the Climate Change Response Act 2002 will be amended to prevent claims for climate-related damage or harm caused by greenhouse gas emissions.
Further details regarding the form and scope of these amendments have not yet been released however the Government's position is that New Zealand's climate change response should be managed at a national level and not litigated through the courts. Minister Goldsmith said “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”.
The proposed changes would restrict claims like Smith v Fonterra, in which environmental and Māori rights activist Mike Smith sued six of New Zealand's highest-emitting companies in public nuisance, negligence, and breach of a duty to cease contributing to climate change. In 2024, the Supreme Court held that the companies could be liable for harm caused by emissions and remitted the matter to the High Court. In light of today's announcement, the trial scheduled for 2027 is unlikely to proceed.
The Government has said that the amendments will not change Parliament's obligations under the Climate Change Response Act, and relevant businesses will still be required to meet their obligations under the Emissions Trading Scheme. However, the changes could mean that individuals and entities are now effectively barred from seeking compensation from companies for climate change-related harm.
This announcement appears to be a reaction to the growing trend of climate litigation in New Zealand and the increasing number of successful cases overseas, where companies and governments have been held liable for failing to adequately address climate change.
For more information, please see Parliament's press release available here or reach out to one of our team members to discuss.
This article was co-authored by Shereen Lee and Sophie Parker.
