The Government announced yesterday morning that it intends to amend the Climate Change Response Act 2002 to prevent the courts from finding liability in tort for climate change damage or harm caused by greenhouse gas emissions. This bar will apply to both current and future claims before the courts.
In the announcement, Justice Minister Paul Goldsmith referenced the 2024 Supreme Court decision Smith v Fonterra, which had determined that a claim against six major companies could proceed to trial. The case was the first to be brought in New Zealand seeking to hold private parties liable in tort for damage caused by climate change. You can read more about the decision here.
Minister Goldsmith was quoted as saying “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. "The Government has emphasised that the amendment will not alter its own responsibilities under the Climate Change Response Act, and that businesses with obligations under the Emissions Trading Scheme will still be required to meet them.
Draft legislation has not yet been published, but we expect the Government will look to progress the legislation through the House ahead of the general election in November.
We will continue to monitor the progress of the amending legislation. If you would like to discuss the implications of the announcement further, please get in touch with one of our experts below.