Government Plans Shield for Emitters
New Zealand’s government plans to change the law to stop courts from holding companies legally responsible for damage linked to greenhouse gas emissions, Justice Minister Paul Goldsmith announced Tuesday.
The proposed legislation follows a high-profile lawsuit filed by Māori climate activist Michael Smith, who is attempting to hold six major New Zealand companies accountable for environmental harm connected to climate change. Among the companies named in the case is Fonterra, one of the country’s largest dairy producers.
Goldsmith said lawsuits of this kind were undermining business confidence and argued that courts are not the appropriate venue for resolving climate-related disputes.
“The courts are not the right place to resolve claims of harm from climate change,” he said, adding that tort law — which governs civil claims for compensation over harmful or negligent conduct — is ill-equipped to handle the complex environmental, economic and social dimensions of climate change.
The governing coalition, which holds a parliamentary majority, is expected to have enough support to pass the legislation once it is formally introduced.
Smith strongly criticized the government’s decision, describing it as “an affront to democracy.” Speaking to Radio New Zealand, he warned that allowing Parliament to effectively block an ongoing court case could threaten the security of any legal claim that becomes politically sensitive.
The move is the latest in a series of environmental policy reversals by New Zealand’s conservative-led government since taking office in 2023. The administration has already scrapped incentives for electric vehicle adoption, lifted restrictions on oil and gas exploration, and introduced a fast-track process for mining approvals.
Meanwhile, climate-related lawsuits are gaining traction globally, with courts in countries including South Korea and Germany increasingly being asked to address governments’ and corporations’ responsibilities for climate change. New Zealand itself is also facing a separate legal challenge over the adequacy of its emissions reduction targets
