Macquarie Generation vs. Hodgson, 2011 NSWCA 424 (Australia)

Environmental activists filed suit against a power company, alleging that the company’s carbon dioxide emissions caused harm, in violation of federal environmental protection law. The lower court ruled for the plaintiffs, finding that the company was required to reduce its emissions to a level achieved by exercising reasonable care for the interests of others and the environment. However, the court of appeal found that a state-owned electricity generation company was not subject to an implied common law limit on its carbon dioxide emissions. In reversing the lower court’s decision, the court of appeal reasoned that no actionable nuisance had been alleged. Thus, common law principles were not applicable to the permit for the company’s operations granted under a statute.