The Liability for Climate Change Damage (Make the Polluters Pay) Bill 2025 establishes legal liability for major fossil fuel companies, allowing individuals and governments to sue for harms attributable to climate change. It holds companies emitting over one million tonnes of greenhouse gases per year liable for loss and damage and empowers the Federal Court to award damages and injunctive relief.

The Bill applies retrospectively from 1 September 1990—the date of the first IPCC report linking fossil fuels to warming—and removes any statute of limitations on claims.

This Bill makes major emitters of greenhouse gases—defined as fossil fuel producers or coal-fired power station operators whose annual emissions exceed one million tonnes—to be liable for climate change damage occurring in Australia. It gives victims of economic loss, property damage, health costs, adaptation and mitigation expenses, and ocean-acidification impacts the right to bring actions against these companies in the Federal Court.

From the explanatory memorandum:

This Bill makes fossil fuel companies liable for climate change damage, giving victims of climate change fuelled events, such as Tropical Cyclone Alfred, the right to bring an action against thermal coal, oil and gas companies for climate change damage.

The key clauses are:

1. Clause 4: Defines "climate change damage" and key terms by reference to the National Greenhouse and Energy Reporting Act 2007.
2. Clause 5: Establishes criteria for major emitters and sets retrospective liability from 1 September 1990 or the date the corporation knew of climate risks.
3. Clause 6: Enables individuals or Commonwealth/State Attorneys-General to seek damages or injunctions, with liability assumed to match each emitter’s share of global emissions.
4. Clause 7: Adopts a balance-of-probabilities standard and allows scientific or statistical modelling to prove causation.
5. Clause 8: Removes any statute-of-limitations for climate damage claims.
6. Clause 9: Confirms Federal Court jurisdiction.
7. Clause 10: Applies to damage on or after 1 January 2025, without limiting concurrent State or common law rights.

The Bill commences the day after Royal Assent (Clause 2).