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Big Oil Faces Climate Lawsuits From States

Financial Times Companies •
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New York and Vermont implemented "climate superfund" laws in 2024, allowing the states to seek damages from fossil fuel companies for climate-related costs. New York expects to collect $75 billion over 25 years from oil and gas groups, while Vermont has not disclosed its financial targets. Similar legislation is under consideration in New Jersey and Maine.

Industry groups and a coalition of red states have filed lawsuits against these laws, warning they will raise consumer prices and create legal vulnerability for other industries emitting greenhouse gases. The US Department of Justice joined the opposition, arguing states cannot regulate emissions crossing state boundaries.

A pending Supreme Court case involving Boulder's lawsuit against ExxonMobil and Suncor could establish precedent. The companies claim federal law bars states from seeking relief for global greenhouse gas emissions. With the EPA's repeal of the endangerment finding, environmental experts argue states now have stronger grounds to regulate emissions, though the court's conservative majority may side with fossil fuel interests.