New York passes law to charge big oil for climate damage

New York has enacted a landmark law requiring large fossil fuel companies to pay for the damage caused by climate change. Signed by Governor Kathy Hochul on Thursday, the Climate Change Superfund Act will impose fees on companies with significant greenhouse gas emissions, creating a state fund for infrastructure projects to repair and prevent damage from extreme weather events.

“The Climate Change Superfund Act is now law, and New York has fired a shot that will be heard round the world: the companies most responsible for the climate crisis will be held accountable,” said State Senator Liz Krueger, a Democrat and the bill’s sponsor. “The planet’s largest climate polluters bear a unique responsibility for creating the climate crisis, and they must pay their fair share to help regular New Yorkers deal with the consequences.”

The law focuses on the biggest emitters of greenhouse gases between 2000 and 2018, holding them responsible for funding resiliency projects like coastal wetland restoration, road and bridge upgrades, and water drainage improvements. However, implementation will not be immediate. The state must first establish rules for identifying responsible parties, notifying companies of fines, and determining which infrastructure projects will be funded.

Unsurprisingly, the oil industry is gearing up for legal battles. “This type of legislation represents nothing more than a punitive new fee on American energy, and we are evaluating our options moving forward,” said the American Petroleum Institute, the industry’s leading lobbying group, in a statement.

The law comes months after Vermont passed similar legislation, signaling a growing trend among states to hold fossil fuel companies accountable for climate-related damage. With extreme weather events like hurricanes, flooding, and heatwaves becoming more frequent and severe, the new law aims to mitigate future harm while ensuring that polluters share the financial burden.