KEY POINTS
- New York fines fossil fuel companies $75 billion under a new law.
- Funds will support climate resilience projects across the state.
- Energy companies plan to challenge the law in court.
New York has become the second state in the U.S. to implement a landmark law targeting fossil fuel companies for their role in climate change.
Governor Kathy Hochul signed the bill on Thursday, which fines oil, gas, and coal companies $75 billion over the next 25 years.
However, the funds will be used to address climate-related damages and adapt critical infrastructure like roads, transit, and water systems to cope with the ongoing impacts of climate change.
The Climate Superfund law, modeled after similar laws for toxic waste cleanup, shifts financial responsibility from taxpayers to the companies deemed responsible for more than 1 billion tons of global greenhouse gas emissions. Payments into the fund will begin in 2028.
Fossil fuel companies face penalties for emissions
Under the law, companies will be fined based on greenhouse gas emissions from 2000 to 2018. The New York Department of Environmental Conservation will identify firms responsible for substantial emissions, making them pay into the Climate Superfund.
State Senator Liz Krueger, a co-sponsor of the bill, stated, “This law ensures that those most accountable for the climate crisis contribute to its solution.”
According to Reuters, she highlighted that the damages from climate change will cost New York over $500 billion by 2050.
Adapting infrastructure to withstand climate change
The funds collected through the law will be used for climate resilience projects, including upgrading roads, transit, and water systems to handle extreme weather. This action is critical as climate-related damages escalate.
Moreover, the law reflects a growing shift in holding corporations accountable for environmental harm. Governor Hochul emphasized the importance of protecting communities.
Energy companies are preparing to challenge the new law in court. Additionally, they argue that federal regulations on pollution and energy preempt state-level actions like the Climate Superfund.
Despite expected pushback, advocates believe the law sets a powerful precedent for environmental accountability. Vermont passed a similar law earlier this year, signaling a trend in state-led climate action
