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Liability for Climate Change Damage (Make the Polluters Pay) 2021
✦ Plain-English Summary
# Liability for Climate Change Damage (Make the Polluters Pay) Bill 2021
## What it does
This bill would let Australians sue major greenhouse gas emitters—like coal companies and coal-fired power stations—for climate-related damage. If someone suffers loss from climate change (property damage, business losses, health costs), they could take legal action against the big polluters responsible for emissions. Each polluter would be liable for their share of the damage, based on how much of the world's total emissions they've produced.
## Why it matters
Right now, people harmed by climate impacts have almost no legal way to get compensation from the companies that caused them. This bill would shift that burden directly onto the biggest emitters, potentially forcing them to pay for floods, droughts, bushfires, and other climate-related harms instead of letting those costs fall on individuals, insurance companies, or taxpayers.
## Key details
- **Who can claim**: Any person in Australia who's suffered damage from climate change—economic loss, property destruction, health impacts, or insurance costs.
- **Who pays**: "Major emitters" including fossil fuel producers and coal-fired power station operators; there's no expiry date on claims.
- **How much**: Each emitter pays in proportion to their share of global greenhouse gas emissions (if a company caused 0.1% of global emissions, they'd be liable for 0.1% of damages).
- **Where disputes go**: The Federal Court would handle all cases.
Official Description
Provides that fossil fuel companies are liable for climate change damage in proportion to their greenhouse gas emissions; and enables certain persons, including those impacted by climate change, to bring legal actions against major greenhouse gas emitters for damage caused by climate change.
Committee Referrals
Senate Standing Committee for the Scrutiny of Bills
Audit History
Last updated on APH
10 Apr 2026
Last checked by Crossbench
yesterday
Full text indexed
yesterday
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