New Zealand Parliament passed legislation on June 13, 2024 [1], that blocks civil climate-change lawsuits against major emitting companies.
The law removes the ability of activists and indigenous groups to hold corporations legally liable for environmental damage in civil courts. This shift alters the legal landscape for corporate accountability in the Pacific region.
The bill passed its third reading at Parliament House in Wellington [2]. Government officials said the measure provides businesses with certainty and protects the national economy from costly litigation [3].
"The legislation gives businesses certainty and protects the economy," Climate Change Minister James Shaw said [3].
The legislation follows a climate lawsuit filed by activist Mike Smith on behalf of a Māori iwi [3]. That legal action targeted several major companies, including Z Energy and Fonterra [5].
Critics of the bill argue that the law undermines democratic principles and environmental justice. Mike Smith, an iwi leader and climate activist, said the legislative victory for corporations was a "dark day for democracy" [3].
While the government presents the law as a domestic tool for economic stability, some observers suggest the move may conflict with international climate-change commitments [5]. The bill remains hotly contested, reflecting a divide over the appropriate limits of climate-change litigation [1].
“"The legislation gives businesses certainty and protects the economy."”
This legislation establishes a legal shield for major emitters, effectively shifting the responsibility for climate mitigation from the judiciary to government policy. By blocking civil suits, New Zealand limits the use of 'strategic litigation'—a growing global trend where NGOs use courts to force corporate emissions cuts—and prioritizes economic predictability over judicial accountability for environmental harm.
