4. Conclusion

This chapter considered climate change and insolvency law in the context of core insolvency law topics, namely disclaimer of onerous property, distribution rules and insolvency practitioner obligations. It provided an overview of the tension that exists in respect of the handling of environmental obligations in an insolvency context, identifying how core insolvency topics may be affected by increased awareness of the importance of environmental safeguards. The Australian constitutional framework that applies to insolvency law and environmental law exacerbates the complexity of the issue. While insolvency law principles are typically concerned with private interests, the increased awareness of the consequences of climate change may contribute to enhanced emphasis on public policy objectives. Judicial statements may indicate that the first steps in this direction have already been taken. It raises an interesting question of whether such significant policy matters should be left to the discretion of the courts or whether legislative intervention is required, as it is apparent that various jurisdictions adopt different approaches in this regard.