decision

Kula Oil Palm Ltd v Tieba [2021] PGNC 611 - decision

Litigation

Sabin

Sabin Litigation

Filing Year For Action

The plaintiff, Kula Oil Palm Limited (KOPL), a palm oil producer in Papua New Guinea, holds a State Lease in Oro Province restricted to agricultural use. As a member of the Roundtable on Sustainable Palm Oil (RSPO), KOPL is obligated to, as part of a number of climate change mitigation and adaptation requirements, maintain buffer zones within its plantation and undergo annual certification through independent inspections. The buffer zones described are designated areas within KOPL’s plantation reserved for preserving native flora and fauna as part of climate change mitigation efforts. 

The defendants trespassed onto the land, in particular the buffer zones, clearing vegetation, milling trees, and constructing buildings despite repeated objections from KOPL. The defendants claimed customary ownership, asserting they had purchased the land with consent from traditional owners and obtained village court approval. Pending the final determination of the proceedings, KOPL sought an interim restraining order, known also as an interim injunction, to prevent the defendants from interfering with the buffer zones.

There are three key requirements for the grant of an interim injunction: First, the court must be convinced there is a serious question to be tried in the substantive proceedings. Second, the court should be satisfied that damages would not adequately compensate the party seeking the injunction for the harm the injunction is intended to prevent. Third, the balance of convenience should favor the grant of the injunction. Regarding the first requirement, the court accepted KOPL’s submission that there is prima facie evidence supporting its ownership of the disputed land under a State Lease with conditions restricting its use to agriculture. The defendants failed to produce evidence of competing title or lawful ownership. Based on the evidence presented, the court deemed the defendants to be illegal trespassers.

The bulk of the court’s discussion concerning climate change occurred in its evaluation of the second requirement, specifically the adequacy of damages as a remedy. In beginning its analysis, the court took judicial notice that palm oil as an industry requires large amounts of deforestation. The court highlighted that KOPL, as a member of the RSPO, has taken deliberate measures to mitigate these risks by establishing buffer zones, which preserve biodiversity and reduce adverse environmental impacts. The defendants’ unauthorized actions, including clearing trees, building structures, and other destructive activities, directly undermined these measures.

The court emphasized the vital role of buffer zones in mitigating environmental harm caused by large-scale oil palm plantations, including deforestation, biodiversity loss, soil degradation, and water pollution. It underscored the irreversible damage caused by deforestation, noting that once the natural habitat is destroyed, the land's ecological value and functionality are significantly diminished, often irreparably. In this context, the court cited the Supreme Court’s observation in Rimbunan Hijau (PNG) Ltd v. Ina Enei, which underscores the immeasurable and generational nature of environmental harm, once again reinforcing the argument that damages cannot adequately compensate for the destruction already caused.

Moreover, the court placed the case within the broader global framework of climate change mitigation and adaptation, stressing the judiciary’s critical role in enforcing measures to address these challenges. It recognizes climate change as a defining global issue with far-reaching implications, particularly for Pacific Island Countries (PICs) that face heightened vulnerability due to rising sea levels and natural disasters. The court, relying in part on its earlier decision in Morua & Ors v. China Harbour Engineering Co (PNG) Ltd & Ors. (2020) N8188, emphasized that human activities are significant contributors to greenhouse gas (GHG) emissions, which exacerbate global warming and threaten the right to life dependent on a safe and clean environment. Applying this reasoning to the defendants’ actions, the court noted that they failed to show evidence of compliance with the legal requirements under relevant environmental and land legislation, such as the Forestry Act 1991, the Lands Act 1996, and the Environment Act 2000. 

The court also opined that it can issue restrictive injunctions when there is a prima facie case of harmful human activities, such as deforestation or pollution, that negatively impact the environment. Once the case is established, the burden shifts to the responsible party to prove that their activities do not contribute to GHG emissions or that emissions are at acceptable levels. In this vein, the court also highlighted the broader role of the judiciary in enforcing sustainable practices to address climate change and its global impacts. Therefore, the court concluded that damages were not an adequate remedy in the present case.

With respect to the third requirement, the court found that the balance of convenience favors granting the interim restraining order to protect KOPL's buffer zone and prevent further environmental damage. The defendants’ ongoing activities increase GHG emissions with local and global climate implications. 

Therefore, the court concluded that an interim injunction was warranted. The orders granted included, among other things, prohibiting the defendants and their associates from causing further environmental destruction to the buffer zones on the land and from interfering with KOPL’s activities.

Kula Oil Palm Ltd v Tieba [2021] PGNC 611

The Climate Litigation Database

Find climate change litigation data and indicators for {text}.

{text} litigation

Sabin Center for Climate Change Law provides Climate Litigation Database, a comprehensive database of US and Global climate change caselaw

Quickly and easily search through the complete text of thousands of climate change law and policy documents from every country.

Search the Climate Litigation Database

An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

Groups  of people who are adversely affected by climate change or the response to it

A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

The management and allocation of funds, assets and investments to meet various objectives

Any substance with chemical properties that can cause physical harm to people or damage the environment, including ammonia, carbon monoxide, phosphine, chlorine, arsenic, cadmium, mercury, pesticides, dioxins, microplastics, benzene, asbestos, aflatoxins, fluoride, methanol, and toxins from marine sources.

A long-lived, colourless gas, chiefly emitted from fossil fuel combustion, deforestation and cement production.

Terrestrial means "of the earth" and relates to the risks to ecological system that includes all living organisms and their interactions within land-based environments, such as forests, grasslands, and deserts.

Any compulsory, unrequited payment to the government levied on corporations or individuals. This can be for environmental reasons, such as introducing a Carbon tax to set a price that emitters must pay for the greenhouse gases they emit.

Risks to the ecosystem health of the marine environment, including ocean warming, ocean acidification, and ocean deoxygenation, harming biodiversity, species health, ecosystem services, and coastal community livelihoods.

Slow onset events evolve gradually from incremental changes over many years or from increased frequency or intensity of recurring events. As defined in the Cancun Adaptation Framework (2010), slow onset events include risks and impacts from rising temperatures, desertification, biodiversity loss, land and forest degradation, glacial retreat, ocean acidification, sea level rise, and salinization.

Social and cultural groups that share collective ancestral ties to the lands and natural resources where they live, occupy or from which they have been displaced

Activities that involve the cultivation of crops and raising of livestock for food, fibre, and other products essential for human life and industry.

People with different national or cultural traditions from the dominant population

Either money or something of monetary value is transferred between two or more organisations, people or countries.

This sector includes firms and individuals offering specialised expertise in fields such as law, accounting, consulting, science and engineering.

Activities of businesses and institutions that provide financial services and products to individuals and organisations.

Activities that relate to the production of goods and services from forests.

A potent, short-lived greehouse gas, largely released from livestock, fossil fuel extraction and waste management.

The release of heat-trapping gases, primarily from human activities such as burning fossil fuels, agriculture and industry.

This sector involves activities that impart knowledge and skills to individuals, including formal schooling, vocational training and educational support.

Extreme weather refers to events where a weather variable exceeds (or falls below) a threshold. Meaning it is significantly different from the average or usual weather pattern.

Fossil gas, commonly known as natural gas, is a fossil fuel consisting chiefly of methane with smaller amounts of other hydrocarbons and trace gases, found in underground deposits.

Kula Oil Palm Ltd v Tieba [2021] PGNC 611 - decision

Policy instrument

Risk

Impacted group

Fossil fuel

Greenhouse gas

Economic sector

Adaptation/resilience

Finance