Climate law changed to prevent lawsuits

The government will pass a law preventing companies from being sued over climate change damage in many cases -  a move environmental organisation Greenpeace says is a “shocking abuse of power”.

The law, which applies to current and future cases, will stop a High Court case against dairy giant Fonterra and six other major emitters in its tracks.

Justice Minister Paul Goldsmith said today the Climate Change Response Act would be amended to prevent courts from making findings of liability in tort from damage or harm caused by greenhouse gas emissions.

A tort is a type of civil law case where one person or entity claims another has caused them harm.

In 2024, iwi leader and activist Mike Smith was granted permission by the Supreme Court to sue Fonterra and other major dairy and fossil fuel companies.

He argued the companies, which collectively contributed about a third of New Zealand’s emissions, had a legal duty to him and others in communities that are being damaged by the effects of greenhouse gas emissions.

Lawyers for the emitters had argued in court that damage from climate change affected everyone, and was best tackled by laws and Parliament, not by the courts using common law.

The hearing, which was sent back to the High Court, was due to start in April next year.

Goldsmith said Smith’s case was “creating uncertainty in business confidence and investments that the government must address”.

The law change would “remove the possible development of a new regime that contradicts the framework Parliament has already enacted to respond to climate change”.

New Zealand already had a legal framework to manage emissions, through the Climate Change Response Act and the Emissions Trading Scheme, he said.

“Our response to climate change is best managed by the government at a national level and not through piece-meal litigation in the courts.”

The law change would not alter the government’s responsibilities under the Act, and businesses that had obligations under the ETS would still be required to meet them, Goldsmith said.

Another landmark climate case, taken against Climate Change Minister Simon Watts over the government’s plan to tackle climate change, is also unaffected.

That case was heard in March and a reserved decision is expected later this year.

‘Shocking abuse of power’

Greenpeace says preventing courts from considering legitimate claims against major emitters will have a chilling effect on democracy in New Zealand and set a dangerous precedent.

In a statement this morning spokesperson Gen Toop said: “This is a shocking abuse of executive power. The courts exist to hold powerful interests to account and protect the public interest. Ministers should not be rewriting the law to shut down cases they don’t like.”

“This government is trying to protect big polluting businesses from paying for the climate damage they have caused, while ordinary New Zealanders’ lives and livelihoods are threatened by repeated climate disasters.

“Big polluters like Fonterra and the oil and gas industry are profiting from the climate crisis, and it is everyday people who are paying the price, from skyrocketing insurance premiums to the enormous cost of rebuilding roads, bridges and other infrastructure after climate storms.”

Greenpeace said costly floods and storms were becoming more frequent and intense due to rising levels of climate pollution. This year the country has already had to declare more extreme weather related states of emergency than for the entirety of 2025.

It believed Smith’s case was a “ground-breaking effort” to hold some of New Zealand’s biggest polluters accountable for harm caused.

“But this government is stepping in to protect corporate profits at the expense of people, nature and future generations.

“We all want our kids and grandkids to have a safe future free from climate disruption. People will continue to stand up and fight for that, no matter what this coalition government does.”

Greenpeace called on the government to abandon the proposed amendment bill and allow the courts to hear Smith’s case.

- additional reporting Allied Media