Supreme Court rejects oil companies’ appeal, allowing climate change lawsuits to proceed in state courts.
At a Glance
- Supreme Court declines to review appeals from fossil fuel companies in climate-related lawsuits
- States seek billions in damages for climate impacts like wildfires and rising sea levels
- Lawsuits claim oil and gas industry misled public about fossil fuels’ climate impact
- Decision may lead to increased state-level energy regulation efforts
Supreme Court’s Decision Opens Door for State-Level Climate Litigation
The U.S. Supreme Court has declined to hear an appeal from oil and gas companies, effectively allowing climate change-related lawsuits to proceed in state courts. This decision marks a significant development in the ongoing legal battle between fossil fuel producers and states seeking compensation for climate-related damages.
States like California, Colorado, and New Jersey are now poised to pursue billions of dollars in damages for climate-related impacts such as wildfires and rising sea levels. These lawsuits allege that the oil and gas industry misled the public about the impact of fossil fuels on climate change.
Oil Industry Spurned by Supreme Court on Hawaii Climate Suit
Honolulu law accuses industry of deceiving consumers on risks
Case is one of dozens of similar lawsuits around the country#ootthttps://t.co/3zTozaGr5k
— Giovanni Staunovo🛢 (@staunovo) January 13, 2025
Oil Companies’ Argument Rejected
The oil and gas companies, including industry giants such as Sunoco, Shell, Chevron, Exxon Mobil, and BP, had argued that greenhouse gas emissions are a national issue and should be handled in federal court. However, the Supreme Court’s decision to reject their appeal means these cases will now be heard in state courts.
“The stakes in this case could not be higher,” stated attorneys representing multiple companies. The lawsuits “present a serious threat to one of the nation’s most vital industries.”
Notably, the Biden administration advised the Supreme Court to keep the case in state court, opposing the companies’ appeal. This stance aligns with the growing trend of using legal action to address climate change both nationally and globally.
Potential Impact on Energy Industry and Regulation
The Supreme Court’s decision could have far-reaching consequences for the energy sector. Legal experts suggest it may lead to more local climate change regulations and liability assignments. Critics argue that these lawsuits distort constitutional federalism and state tort law.
“I hope that the Court will hear the issue someday, for the sake of constitutional accountability and the public interest,” said Adam White, senior fellow at the American Enterprise Institute.
The denial is seen by some as a missed opportunity that could lead to increased state-level energy regulation efforts. “While the Court denied cert in this particular case, cases like this will only continue to proliferate as more and more state officials try to make themselves national energy policy czars,” White added.
Growing Trend of Climate Litigation
Since 2017, numerous state and local governments have filed similar lawsuits against fossil fuel companies. These legal actions cite damages such as flooding and erosion caused by climate change. The trend reflects a growing push to hold companies accountable for their alleged contributions to environmental harm.
New York has recently enacted legislation requiring fossil fuel companies to fund climate change mitigation efforts, shifting costs from residents to the companies. “This landmark legislation shifts the cost of climate adaptation from everyday New Yorkers to the fossil fuel companies most responsible for the pollution,” stated New York Governor Kathy Hochul’s office.
As these lawsuits proceed in state courts, the financial implications for oil and gas companies could be significant. The outcome of these cases may set precedents for future climate-related litigation and potentially reshape the landscape of corporate responsibility for environmental impacts.
