Fossil fuel companies to pay for climate damage caused between 2000 and 2018
In a groundbreaking move, New York state has passed a new climate law that will see fossil fuel companies fined a total of $102 billion over the next 25 years to cover the costs of climate damage. Governor Kathy Hochul signed the bill into law on December 26, with the aim of shifting the financial burden of climate change adaptation and recovery from taxpayers to the oil, gas, and coal industries responsible for greenhouse gas emissions.
The law establishes a “Climate Superfund,” into which companies will pay based on the amount of greenhouse gases they released between 2000 and 2018. Fossil fuel companies that are determined by the New York Department of Environmental Conservation to have released over one billion tonnes of greenhouse gases will be subject to the fines. The funds raised will go towards repairing and adapting infrastructure to deal with the impacts of climate change, such as extreme weather events and rising sea levels.
The new legislation, which will take effect in 2028, follows Vermont’s lead as the second state to implement such a law. The superfund model, similar to state and federal toxic waste laws, holds polluters accountable for the environmental damage they cause. New York Senator Liz Krueger, who co-sponsored the bill, emphasized that the state is taking a firm stance against fossil fuel companies, asserting that those responsible for the climate crisis must be held accountable.
The state estimates that the costs of repairing damage and adapting infrastructure to climate change will exceed $500 billion by 2050. The law comes as major oil companies have reported over $1 trillion in profits since 2021 and have long been aware of the link between fossil fuel extraction and climate change.
Energy companies are expected to challenge the law in court, claiming that federal regulations governing energy and pollution supersede the state’s ability to impose these fines.
