New York State will impose $75 billion in fines on fossil fuel companies over the next 25 years to fund climate damage mitigation. Governor Kathy Hochul signed the landmark bill into law on Thursday, marking a significant step in holding oil, gas, and coal companies accountable for their role in climate change.
Law Targets Polluters to Fund Climate Adaptation
Under the new legislation, fossil fuel companies will be fined based on the greenhouse gas emissions they produced between 2000 and 2018. Companies responsible for more than 1 billion tons of emissions, as determined by the New York Department of Environmental Conservation, must pay into a Climate Superfund starting in 2028. The funds will support efforts to mitigate climate change impacts, including upgrades to roads, transit systems, water infrastructure, and buildings.
“This law shifts the financial burden of climate recovery from individual taxpayers to the companies most responsible for the climate crisis,” said New York Senator Liz Krueger, a co-sponsor of the bill. She described the legislation as a groundbreaking move that will set an example worldwide.
Modeled After Toxic Waste Superfund Laws
The New York law follows Vermont’s lead, becoming the second state to implement such measures. Both laws draw inspiration from state and federal superfund programs that require polluters to pay for cleaning up toxic waste. Repairing and adapting New York’s infrastructure to handle the effects of extreme weather will cost more than $500 billion by 2050, according to Krueger.
Fossil fuel companies have faced mounting criticism for profiting while contributing to climate change. Krueger pointed out that major oil companies have collectively earned over $1 trillion in profits since January 2021, despite knowing for decades about the environmental impact of fossil fuel extraction and combustion.
Legal Challenges Likely
Energy companies may challenge the law in court. They may argue that it conflicts with federal regulations governing polluters and energy producers. These legal battles could test the limits of state authority in addressing the climate crisis.
As New York sets a bold precedent, the law underscores the growing urgency of addressing climate change and the role of fossil fuel companies in funding recovery and adaptation efforts.
