In a historic move aimed at addressing the escalating climate crisis, New York State Governor Kathy Hochul signed a landmark bill into law on Thursday that will fine fossil fuel companies a total of $75 billion over the next 25 years. The unprecedented measure holds oil, gas, and coal companies accountable for the damage their operations have inflicted on the environment.
Under the new law, fossil fuel companies will be required to pay into a state-run Climate Superfund, which will help finance climate change mitigation and adaptation efforts. These funds will be directed toward projects that address the impacts of climate change, such as upgrading infrastructure, including roads, public transit, water and sewage systems, and buildings, to withstand more frequent and severe weather events.
“New York is sending a clear message to the world: those most responsible for the climate crisis will be held accountable,” said New York State Senator Liz Krueger, a co-sponsor of the bill. “The cost of inaction is too high, and it’s time for fossil fuel companies to pay their fair share in repairing the damage they’ve caused.”
The fines will be imposed based on the amount of greenhouse gas emissions that each company is responsible for between 2000 and 2018. The law will specifically target companies responsible for more than 1 billion tons of global greenhouse gas emissions, as determined by the New York Department of Environmental Conservation. The first payments into the Climate Superfund are scheduled to begin in 2028.
This groundbreaking law positions New York as the second state in the U.S. to adopt such a measure, following Vermont’s passage of a similar law earlier this year. The laws are modeled after the federal Superfund program, which requires polluters to pay for the cleanup of hazardous waste sites, but in this case, the focus is on addressing the climate damage caused by fossil fuel extraction and combustion.
New York Senator Liz Krueger, who has been a vocal advocate for climate action, noted that the state’s infrastructure is expected to face repair and adaptation costs exceeding $500 billion by 2050 due to the increasing severity of climate-related events. In contrast, major oil companies have reported more than $1 trillion in profits since 2021, despite knowing since the 1970s that fossil fuel activities contribute significantly to climate change.
The bill’s passage comes at a time of growing urgency in addressing climate change, with rising global temperatures, extreme weather events, and the accelerating impacts of environmental degradation. Critics argue that fossil fuel companies have long contributed to the crisis without bearing the full financial burden of the damages caused.
However, the new law is expected to face legal challenges from the energy industry, with companies likely to argue that the fines are preempted by federal regulations governing energy companies and pollution. Despite potential legal hurdles, the law represents a bold step forward in the fight against climate change and sets a powerful precedent for other states to follow.
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