New Zealand Government Changes Law to Protect Companies from Climate Change Lawsuits

May 12, 2026, 06:45

Introduction

The New Zealand government has announced a change in the law to protect companies from being sued for their greenhouse gas emissions.

Main Body

The proposed change aims to stop companies from being held legally responsible for damages caused by climate change. This move specifically targets current and future legal cases, including a major lawsuit started by iwi leader Mike Smith against Fonterra and five other large polluters. The Supreme Court had previously allowed this case to proceed, as the companies are responsible for about one-third of the country's emissions. The goal of the lawsuit was not to get money, but to encourage these companies to reduce their emissions for the public good. Justice Minister Paul Goldsmith explained that such lawsuits create uncertainty for businesses and discourage investment. He emphasized that climate change should be managed through national systems, such as the Emissions Trading Scheme, rather than through individual court cases. However, critics like Greenpeace argue that this is an abuse of power. They claim that national laws do not provide a way for people to get compensation when climate change destroys infrastructure or increases insurance costs. This decision is part of a larger trend of removing environmental rules by the current government, which has also ended incentives for electric vehicles. While this new law stops lawsuits against companies, it does not stop the legal challenge against Minister Simon Watts regarding whether the government's own emission targets are high enough.

Conclusion

New Zealand is now making it illegal to hold companies responsible for climate damage, which effectively ends current lawsuits against major polluters.

Learning

⚡ The 'B2 Power-Up': Moving from Simple to Complex Cause & Effect

An A2 student usually says: "The government changed the law because they want to help companies." To reach B2, you need to express purpose and result using more sophisticated structures found in this text.

🎯 The 'Aim' Structure

Instead of always using "want," look at how the article uses "aim to":

*"The proposed change aims to stop companies from being held legally responsible..."

B2 Shift: Stop saying "I want to learn English" $\rightarrow$ Start saying "I aim to achieve fluency by next year."

🛠️ Advanced Connectors: 'Rather Than'

At A2, you use "but." At B2, you contrast two ideas using "rather than" to show a preference or a specific choice.

Text Example: "...managed through national systems... rather than through individual court cases."

The Logic: It doesn't just say "not court cases"; it suggests that national systems are the correct alternative.

🧬 The 'Preventative' Pattern: Stop [Someone] From [Doing]

This is a critical B2 building block. A2 students often make mistakes here (e.g., "Stop them to sue" $\rightarrow$ Wrong!).

The Formula: $ext{Stop} + ext{Object} + ext{from} + ext{Verb-ing}$

From the text: *"...protect companies from being sued..."
From the text: *"...stop companies from being held legally responsible..."

Try it: Instead of saying "The rain stopped me going out," use the B2 bridge: "The rain stopped me from going out."

Quick Vocabulary Upgrade for the B2 Transition:

A2 Word	B2 Alternative (from text)	Why?
Give money	Compensation	More formal/legal
Big	Major	More precise for impact
Start	Proceed	Used for official processes

Vocabulary Learning

proposed (adj.)

suggested or put forward as an idea

Example:The government introduced a proposed new law to protect companies.

aims (v.)

intends to achieve a particular goal

Example:The change aims to stop companies from being held liable.

stop (v.)

bring to an end; prevent

Example:The new regulation will stop further lawsuits.

held (v.)

kept or maintained in a particular state

Example:The companies were held responsible for one-third of the country's emissions.

legally (adv.)

in a manner that follows the law

Example:Companies can no longer be sued legally for climate damage.

responsible (adj.)

accountable for something

Example:The companies are responsible for one-third of the country's emissions.

damages (n.)

losses or harm caused by something

Example:The lawsuit seeks damages for the environmental harm caused.

climate (n.)

the weather conditions in a place over a long period

Example:Climate change is a major global issue.

change (n.)

an act of making something different

Example:The government is making a change to the existing law.

move (n.)

an action or decision to do something

Example:This move is part of a larger trend to remove environmental rules.

targets (v.)

sets goals or aims for something

Example:The government sets targets for reducing emissions.

lawsuit (n.)

a legal case brought by a person or group against another

Example:The lawsuit against Fonterra was a high‑profile case.

leader (n.)

a person who leads or guides others

Example:The iwi leader Mike Smith spearheaded the legal action.

emissions (n.)

gases released into the air

Example:Reducing emissions is crucial for the planet.

uncertainty (n.)

lack of certainty; doubt

Example:The lawsuits create uncertainty for businesses.

discourage (v.)

make someone less enthusiastic or confident

Example:Lawsuits discourage companies from investing.

investment (n.)

money or resources put into something to gain profit

Example:Investment in clean energy is essential for future growth.

scheme (n.)

a plan or program to achieve something

Example:The Emissions Trading Scheme helps reduce pollution.

critics (n.)

people who express disapproval or negative opinions

Example:Critics argue that the law is an abuse of power.

compensation (n.)

money or other payment given to make up for loss or injury

Example:The public demands compensation for the damage caused.