“Vermont Makes History: First State to Charge Fossil Fuel Companies for Climate Change Damages”

On Thursday, Vermont made history by becoming the first state in the United States to pass a law that holds fossil fuel companies accountable for the damages caused by climate change. This groundbreaking legislation sets a new precedent in the global fight to address the impacts of products that emit greenhouse gases.

The law, known as the Vermont Climate Superfund Law, will allow the state to charge fossil fuel companies based on the share of emissions they produced between 1995 and 2024. Inspired by the federal superfund law of 1980, which holds polluters responsible for environmental cleanup costs, this new measure aims to make companies pay for the harm caused by their products.

Funds generated by the law will be allocated towards climate adaptation and resilience projects in Vermont. This comes after the state experienced record rain and floods last year, leading to devastating consequences in various parts of the state.

The Vermont Climate Superfund Law received overwhelming support from state lawmakers, with a veto-proof majority passing the measure in both the House and the Senate. Republican Governor Phil Scott, while expressing concerns about the potential impact on “Big Oil,” allowed the law to go into effect without his signature.

Environmental groups have praised the passage of the bill, emphasizing the urgent need for action to address the climate crisis. Ben Edgerly Walsh, the climate and energy program director at the Vermont Public Interest Research Group, hailed the law as a crucial step towards holding companies accountable for their contributions to climate change.

However, the law is expected to face legal challenges, particularly from industry groups like the American Petroleum Institute. The group has raised concerns about the constitutionality of the legislation, arguing that it unfairly imposes costs on companies for activities that date back decades.

Vermont officials now have until January 2027 to develop a methodology for charging fossil fuel companies for the damages caused by their products. The companies will have the opportunity to participate in the rule-making process to ensure a fair and legally defensible program.

The passage of the Vermont Climate Superfund Law is part of a broader trend towards holding polluters accountable at the state level. Similar measures have been proposed in states like New York, Massachusetts, California, and Maryland, inspired by a national proposal put forth by Senator Bernie Sanders in 2021.

The potential financial impact of the law on fossil fuel companies could be significant, with estimates suggesting that companies may be forced to pay hundreds of millions of dollars in damages. While the road ahead may be challenging, supporters of the law are hopeful that it will pave the way for more states to take action on climate change and hold polluters accountable for their actions.