The New Zealand Government has announced plans to change climate legislation to stop companies being sued for damage linked to greenhouse gas emissions, a move critics say weakens public accountability on climate change.

Justice Minister Paul Goldsmith said the proposed amendment to the Climate Change Response Act would prevent courts from finding companies liable in civil climate-related claims, including ongoing and future cases.

The change would effectively halt a landmark High Court case brought by Māori activist Mike Smith against dairy giant Fonterra and several other major emitters. Smith argues the companies contributed to climate harm affecting communities, land and cultural rights. New Zealand’s Supreme Court allowed the case to proceed in 2024.

Mr Goldsmith said climate policy should be managed through Parliament and New Zealand’s Emissions Trading Scheme, rather than through “piece-meal litigation in the courts”. The government argued the lawsuits created uncertainty for businesses and investment.

Environmental lawyers and opposition politicians condemned the proposal, saying it could remove one of the few remaining legal avenues for communities seeking compensation for climate-related loss and damage.

The decision is likely to attract close attention across the Pacific, where low-lying island nations, including Tonga, face increasing threats from sea-level rise, coastal erosion and extreme weather linked to climate change.

The legislation is expected to be introduced to Parliament later this year.