Vermont has become the first state to pass a law requiring fossil fuel companies to cover the costs of climate-related disasters, with other states poised to follow.
Vermont's law, effective July 1, charges fossil fuel companies based on their historical greenhouse gas emissions.
New York, California, Maryland, Massachusetts and New Jersey are considering similar measures, with New York's pending governor approval.
The oil industry is preparing legal challenges, arguing the bills are based on unreliable science.
Key quote:
“There’s a wealth of information out there dating back before 1995 indicating that the [oil] industry knew of the risks associated with its products.”
— Elena Mihaly, vice president of Conservation Law Foundation Vermont
Why this matters:
As climate change worsens, states are seeking ways to hold fossil fuel companies financially responsible for damages, potentially setting a precedent for nationwide efforts. These initiatives could face significant legal and political hurdles.
The summit began with a breakthrough after countries agreed for the first time in the history of these talks to discuss compensation arrangements for irreparable climate damages.
It's been a busy year for energy companies and U.S. locales embroiled in litigation over climate change damages, but the end still isn't in sight for these cases.
