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New Zealand has blocked lawsuits against companies for climate-related damages

Lev Shevtsov 19 August 2026 05:05
New Zealand has blocked lawsuits against companies for climate-related damages

The New Zealand Parliament has passed legislative changes that block civil lawsuits seeking to hold companies liable for damages related to climate change. According to Channel NewsAsia, the final vote took place on the evening of August 18: 67 members of Parliament supported the initiative, while 53 voted against it.

The right-wing coalition government stated that the law is intended to prevent civil lawsuits from conflicting with the government’s climate policy and creating uncertainty for business and investment.

The changes were made following a lawsuit filed by Māori climate activist Michael Smith against six prominent New Zealand companies. He sought to hold them accountable for their contribution to environmental damage linked to climate change. Among the defendants was the dairy company Fonterra. According to CNA, the new law has effectively halted proceedings in this case.

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Smith called the passage of the law “a dark day for democracy.” Steve Abel, a member of the opposition Green Party, stated in Parliament that the legislative change deliberately runs counter to the public interest. In his view, courts can hear claims regarding climate damage if the government and industry fail to address the problem.

Justice Minister Paul Goldsmith stated that a High Court case could have created a new legal framework that would conflict with the legislative system already approved by Parliament. He said that the issue of climate change damage involves complex environmental, economic, and social factors, so the response to it should be shaped by the government at the national level, rather than through individual court cases.

Last month, the independent Climate Change Commission warned that government policy could result in New Zealand failing to meet its emissions reduction targets. The Commission noted that Prime Minister Christopher Laxton’s government had not taken into account its recommendations for reducing emissions by 2025. According to the commission’s assessment, emissions are gradually declining, but progress stalled in 2024, and current policy decisions do not ensure the necessary pace of change.

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