New Zealand to Amend Climate Legislation, Shield Companies from Private Liability

New Zealand plans to amend its Climate Change Response Act to prevent courts from holding companies liable in private cases for climate-related harm due to emissions. Justice Minister Paul Goldsmith emphasized legislative management of climate issues over court litigation. The move intends to boost business confidence.

The New Zealand government announced plans to amend climate legislation to protect companies from private liability claims related to greenhouse gas emissions. Justice Minister Paul Goldsmith stated the amendment would impact both current and future court cases, including one against six major emitters, including Fonterra Co-Operative Group.

The ongoing case, driven by climate activist Michael Smith, alleges that emissions by these companies have contributed significantly to climate change, affecting his land and cultural rights. Goldsmith highlighted that such litigation disrupts business confidence and investment, advocating instead for parliamentary management through New Zealand's Emissions Trading Scheme and existing climate laws.

Goldsmith articulated that courts are unsuitable for resolving complex environmental issues and emphasized that the amendment would not impact New Zealand's existing climate responsibilities or businesses' duties under the ETS.