Climate Law Developments Against Corporate Entity Emissions

Climate Law Developments Against Corporate Entity Emissions

Climate law continues to impact the domestic and international legal sphere. The recent decision to allow a tort-based case on the liability of major fossil fuel entity emitters to go to trial, may impact New Zealand’s climate policy. The Supreme Court ruled in favour of Mike Smith’s case in a judgment delivered on 7 February 2024. Smith is the spokesperson for climate change at the National Iwi Chairs Forum for tribal leaders.

The decision is significant as Smith’s case is brought against seven large corporate entity emitters, namely Fonterra Co-operative Group, Genesis Energy, New Zealand Steel, Channel Infrastructure NZ, BT Mining, Dairy Holdings and Z Energy. Smith’s case was brought against these companies in 2020 and culminated into a Supreme Court decision allowing the High Court trial to advance.

The legal action is driven by the desire for companies to strive for net zero emissions. The driving force for this is New Zealand’s push for net zero carbon emissions by 2050 as set out under the Climate Change Response (Zero Carbon) Amendment Act 2019. Three causes of action were raised in the tort of public nuisance, negligence and a newly proposed tort which would involve climate damage that is cognizable at law. Smith has yet to present his evidence on why these companies should be held liable for their actions, but the decision to go to trial is in itself starting an open conversation in the somewhat ambiguous sphere of climate law.

The repercussions of this trial will be interesting for domestic and international law, to potentially hold large climate emitters liable for the harm their pollution creates. Or at the very least, start an important conversation as climate-related discourse continues to impact government policy and laws.