Government Clarifies Climate Change Laws to Boost Business Certainty and Investment

The Government is clarifying climate change laws to provide businesses with certainty around their obligations, Justice Minister Paul Goldsmith says.

Ongoing litigation in the High Court, where an applicant has brought civil claims against six major businesses for their greenhouse gas emissions, is creating uncertainty in business confidence and investment that the Government must address.

The Government is acting now to provide legal clarity and certainty and to remove the possible development of a new regime that contradicts the framework Parliament has already enacted to respond to climate change.

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.

Therefore, the Government will amend the Climate Change Response Act 2002 to prevent findings of liability for tort for climate change damage or harm caused by greenhouse gas emissions in both current and future proceedings before the courts.

Our response to climate change is best managed by the Government at a national level and not through piece-meal litigation in the courts. New Zealand already has a legal framework to manage greenhouse gas emissions set through Parliament through the Climate Change Response Act 2002 and the Emissions Trading Scheme (ETS).

It is essential to maintain the coherence of the regulatory system and to deliver consistent obligations for greenhouse gas emitters.

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.

This law change will not alter the Government’s responsibilities under the Climate Change Response Act and businesses that have obligations under the ETS will still be required to meet them.