New Zealand blocks lawsuits against firms over climate harm

“UNCERTAINTY”

Justice minister Paul Goldsmith said the legislation would give certainty to businesses around their climate obligations.

“Ongoing litigation in the High Court, where an applicant has brought civil claims against six major businesses for their greenhouse gas emissions, risks developing a new regime that contradicts the framework Parliament has already enacted,” Goldsmith said.

“It’s creating uncertainty in business confidence and investment,” he said in a statement.

The courts were not the right place to resolve claims of harm from climate change, he said, arguing that the issue involved a “range of complex environmental, economic and social factors”.

“Our response to climate change is best managed by the Government at a national level and not through piecemeal litigation in the courts.”

An independent climate advisory body warned last month that government policies could lead to New Zealand missing its emissions reduction targets.

The report by the Climate Change Commission – an entity established by law in 2019 – said Prime Minister Christopher Luxon’s government had ignored its emissions-cutting advice in 2025.

“The time available to correct course is now short,” it said in a report.

Government policies that exclude agriculture from emissions pricing, changes to clean vehicle rules, a reduction in reporting requirements for businesses and plans for a liquefied natural gas import facility would raise emissions beyond any savings made elsewhere, it warned.

Jo Hendy, chief executive of the commission, said the findings were a “clear warning sign”.

“Emissions are gradually falling, but progress stalled in 2024, and current policy settings are not delivering at the pace needed,” Hendy said.