New York has introduced a new bill directed at fossil fuel companies. The law holds fossil fuel companies accountable for their share of emissions and climate change impact. Governor Kathy Hochul signed the legislation. The new policy aims to raise nearly $75 billion over the next 25 years from fossil fuel companies.
By 2050, the state of New York will need to spend more than $500 billion to remediate climate harm. This is what predictions are pointing towards, according to Reuters.
The big oil firms have known all along that fossil fuels cause a great impact on climate. They have been aware since 1970. Despite knowing the fact about fossil fules, the companies have done little to address the damages. In fact, major oil firms have raked in $1 trillion in profits since 2021.
The law establishes a system to address damages and allocates funds to repair the harm caused.
Also read: Canada Issues Warning to Oil and Gas Companies on Emissions Data Compliance
The new law places the cost of climate change adaptation and recovery on companies that emit greenhouse gases, rather than taxpayers.
Based on their greenhouse gas emissions from 2000 to 2018, oil, gas, and coal firms will be the focus of the fines. They will contribute to a Climate Superfund starting in 2028. This law applies to any company deemed to be responsible for over 1 billion tons of global greenhouse gases.
The money raised will be directed towards addressing the state’s climate change impacts. Repairing infrastructure and adapting it to extreme weather is an example of an initiative.
Legal Aspects
It is anticipated that energy firms would dispute the bill in court, arguing that federal law preempts it. They argue that federal regulations governing energy companies and pollution should take precedence over state law. Despite these potential challenges, New York’s landmark move sets an important precedent for climate accountability.
Both states’ rules are based on federal superfund regulations, which mandate that polluters cover the costs of clearing up hazardous waste.
Moving Towards Accountability
The measure is a component of a larger initiative to hold fossil fuel companies accountable. Laws are being implemented to hold corporations accountable for the climate catastrophe. The second state to enact such a statute is New York. Vermont was the first to introduce such a statute.
This new law will provide funding for initiatives to adapt buildings, water systems, transit systems, and roadways to the challenges posed by climate change.