Govt once more intervenes to protect business from expensive lawsuits
Tuesday, 12 May 2026
The Government plans to pass a law to protect dairy giant Fonterra by banning civil lawsuits against companies for their climate-damaging emissions.
Justice Minister Paul Goldsmith cited the case of Smith vs Fonterra and others as motivation for the proposed law.
The Government would 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, Goldsmith said.
Smith vs Fonterra is a case before the High Court in which Ngāpuhi and Ngāti Kahu climate activist Michael John Smith is suing Fonterra, Genesis Energy, Dairy Holdings, New Zealand Steel, Z Energy, the New Zealand Refining Company, and BT Mining for damaging to the climate.
Smith has been approached for comment.
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Fonterra welcomed the announcement.
Its managing director for co-operative affairs Matt Bolger said: “Our view has always been that regulation of greenhouse gas emissions requires a sophisticated, economy-wide regulatory response and Parliament is the appropriate place to determine such wide-reaching public and economic policy on matters of significant public interest such as climate change.”
Greenpeace dubbed the move a “shocking abuse of power”.
Greenpeace spokesperson Gen Toop said: “Big polluters like Fonterra and the oil and gas industry are profiting from the climate crisis, and it is everyday people who are paying the price, from skyrocketing insurance premiums to the enormous cost of rebuilding roads, bridges and other infrastructure after climate storms.”
It’s the second time the Government has tried to pass retrospective laws to protect businesses from being sued.
Last year, Commerce and Consumer Affairs Minister Scott Simpson was defeated in an attempt to pass a retrospective law that could have reduced awards in a High Court class action against ANZ and ASB after NZ First refused to back it.
It’s also not the first time National has attempted to intervene in Smith vs Fonterra.
Last year, Southland National MP Joseph Mooney proposed a private member’s bill that sought to abolish people’s right to take legal action against companies over the damage they cause to the climate.
Smith told The Post at the time that he had been expecting such a move for some time, but called it “an affront to justice and the rule of law”.
Goldsmith said his proposed amendment to the Climate Change Response Act 2002 would bring “clarity” for businesses, and certainty around their obligations.
“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,” he claimed.
“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,” he said.
“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,” Goldsmith said.
“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,” he said.
In Smith v Fonterra and others the applicant has brought tort claims including in public nuisance and a tort claim for damage to the climate system against six emitters.
The case was struck out by the Court of Appeal in October 2021, but reinstated by the Supreme Court in February 2024.
It is now set down for trial at High Court in April 2027.