Climate change tort law change

The Government has decided to amend the Climate Change Response Act 2002 (CCRA) to prevent the courts from making certain types of civil findings of liability for climate change damage caused by greenhouse gas emissions.

In a case before the High Court (Smith v Fonterra and others), the applicant has brought tort claims, including in public nuisance and a novel tort claim for damage to the climate system, against six emitters. 

The case was initially struck out by the Court of Appeal in October 2021 but reinstated by the Supreme Court in February 2024 and sent back to the High Court for trial, which is due to begin in April 2027.

A tort is a civil claim brought in private law in situations where the conduct of one person or business or organisation causes harm or invades the interests of another. It is primarily developed through the common law (i.e., court-made law) and most commonly involves claims related to negligence (e.g., property damage caused by faulty workmanship or economic damage due to poor professional advice). 

The Government’s view is that New Zealand’s response to climate change is best managed at the national level through the CCRA and Emissions Trading Scheme (ETS) due to the complex environmental, economic and social factors involved.

New Zealand has a legal framework to manage greenhouse gas emissions through the CCRA and ETS. The Government has decided it is important to maintain the coherence of the regulatory system that has been agreed by it and Parliament and to deliver consistent obligations for greenhouse gas emitters.

The Government considers ongoing litigation is creating uncertainty in business confidence and investment and is changing the law to prevent findings of liability in tort for climate change damage or harm caused by greenhouse gas emissions. The law change would apply to the existing High Court case.

The law change will not change the Government’s responsibilities under the CCRA and businesses with obligations under the ETS will continue to be responsible for them.

Media release from the Minister of Justice, Hon Paul Goldsmith, is available on the Beehive website(external link).

The decisions of the Supreme Court and Court of Appeal can be found on the Courts of New Zealand website(external link). 

 

← Back to the news