The New Zealand government will amend the Climate Change Response Act 2002 to stop tort liability for climate change damage or harm caused by greenhouse gas emissions due to its complex litigation, Justice Minister Paul Goldsmith said in a news release on Tuesday.
The move comes in response to ongoing High Court litigation, with climate activist Michael Smith suing six major greenhouse gas emitters, including dairy giant Fonterra Co-operative Group. A trial date is set for 2027.
The case alleges that the companies' emissions have contributed to climate change and harmed Smith's land, interests and cultural rights.
The amendment would prevent courts from finding tort liability for climate damage in both the current case and future lawsuits, effectively dismissing the legal pathway opened by the Supreme Court's 2024 ruling that Smith's claim was arguable.
"Our response to climate change is best managed by the Government at a national level and not through piece-meal litigation in the courts," Goldsmith said.
"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".
New Zealand already has a national legal framework to manage greenhouse gas emissions through the Climate Change Response Act 2002 and its Emissions Trading Scheme or ETS.
The government says it is acting to maintain the coherence of the regulatory system and deliver consistent obligations for greenhouse gas emitters, rather than allowing a patchwork of court-driven outcomes that could contradict Parliament's existing climate framework.
Lawyers for Climate Action NZ criticized the move, arguing it will insulate climate polluters from liability and shield the largest emitters from the costs of climate-related damage. The group said the change raises fundamental issues for the environment and the constitutional role of the courts, and argued that climate change legislation and the ETS do not allocate responsibility for damage caused by emissions.
"This announcement is a blatant attempt to prevent Mike Smith's proceeding against seven of New Zealand's largest emitting companies from going to trial," the group said in a news release. "The Government announcement itself makes it clear these amendments are in direct response to that proceeding."
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--Reporting by Sang Ah Lee, slee@opisnet.com; Editing by Mei-Hwen Wong, mwong@opisnet.com
(END) Dow Jones Newswires
May 12, 2026 03:53 ET (07:53 GMT)
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