Reform is in response to ongoing case against six businesses over their greenhouse gas emissions
The Parliament has passed legislation that prevents courts from finding businesses liable in tort for climate change damage or harm caused by greenhouse gas emissions, Justice Minister Paul Goldsmith says.
The government introduced the change in response to ongoing High Court litigation involving civil claims against six major businesses over their greenhouse gas emissions. In a media release, Goldsmith said the proceedings risked creating a legal regime that conflicted with the climate change framework Parliament had already established.
The legislation amends the Climate Change Response Act 2002 to prevent findings of tort liability for climate change damage or harm arising from greenhouse gas emissions. The restriction applies to both current and future court proceedings.
Goldsmith said the change would provide greater certainty for businesses and investors by clarifying the role of tort law in climate change disputes. He argued that courts should not determine claims involving climate change harm because tort law does not adequately address an issue involving environmental, economic and social factors.
The government maintains that Parliament should manage New Zealand’s response to climate change through national policy and legislation rather than individual court proceedings. The Climate Change Response Act 2002 and the Emissions Trading Scheme provide the existing legal framework for managing greenhouse gas emissions.
Goldsmith said the legislative change does not affect the government’s responsibilities under the Climate Change Response Act. Businesses that hold obligations under the Emissions Trading Scheme must continue to comply with those requirements.
The government said the amendment would provide businesses with greater certainty about their legal obligations and support investment and economic activity.
The legislation follows litigation in the High Court in which an applicant has pursued civil claims against six major businesses concerning their greenhouse gas emissions. The new provisions will prevent courts from finding liability in tort for climate change damage or harm caused by greenhouse gas emissions in those proceedings and any future cases.
“Our government is committed to fixing the basics, and certainty of law is essential for businesses to operate, attracting overseas investment, and stimulating economic growth,” Goldsmith said.
