New York Governor Kathy Hochul signed a landmark law that will force fossil fuel companies to pay fines of $75 billion over the next 25 years to pay for the vast damage inflicted by climate change. The law, passed on Thursday, shifts the financial burden of climate recovery and adaptation from taxpayers to oil, gas, and coal companies considered responsible for greenhouse gas emissions.
The money accumulated in the form of these fines is aimed at reducing the effect of climate change. Activities may involve adapting infrastructure for the roads, transit systems, water and sewage facilities, buildings, and other systems public to withstand extreme events weather.
This is a monumental step in holding the companies most responsible for the climate crisis accountable,” said New York Senator Liz Krueger, a co-sponsor of the bill. She described the law as a signal to the world that polluters will bear the consequences of their actions.
Fines Based on Greenhouse Gas Emissions
Under the new law, fossil fuel companies will be fined based on the greenhouse gases they released into the atmosphere between 2000 and 2018. The fines will be paid into a Climate Superfund starting in 2028. The law applies to companies identified by the New York Department of Environmental Conservation as being responsible for more than 1 billion tons of global greenhouse gas emissions during that period.
New York becomes the second U.S. state to make the historic law after Vermont made such law earlier in this year, following that same models based on the real-state superfund laws at both states and federal.
It seems New York costs its money just for pollution
Measures follow current state and federal superfund laws requiring pollution companies to cover cleanup for contaminated areas
The financial impact of climate change in New York is enormous. Senator Krueger highlighted that repairing damage and adapting infrastructure to withstand extreme weather events will cost the state over $500 billion by 2050. The new law aims to alleviate this burden on taxpayers by ensuring that fossil fuel companies contribute to these costs.
Krueger further states that major oil companies have earned over $1 trillion in profit since January 2021 and have known for quite some time about the environmental effects of fossil fuels. Since at least the 1970s, these firms have known that extracting and burning fossil fuels significantly contributes to climate change, she said in the statement.
Legal Challenges Anticipated
Nevertheless, the law will certainly face a challenge on grounds that it violates the statutory obligations of the energy corporations by flouting federal regulations imposed over corporations relating to energy and air-polluting entities.
“The law will certainly have long court battles with an interpretation of whether the state law can actually allow these hefty fines against large corporation for their carbon contribution to global emissions.
The implementation of this law in New York would send the right message across the globe. The concept that it puts across is that polluters should be brought to justice for causing this climatic crisis. This piece of legislation could also act as a guiding example for other states or even countries in order to promote climate justice and hold corporate America accountable.
With this law, New York has emerged as the leader in dealing with climate change’s financial and environmental challenges. The fines are sizeable, but the amount shows the state’s intention to build a more sustainable and resilient future.