In 2023, severe flooding hit Chester and other areas in Vermont. In response, Vermont passed a law that aims to make fossil fuel companies pay for the damages caused by climate change.
Vermont is the first state to try this approach, but others may soon follow. New York passed a similar bill in June, although it’s uncertain if Governor Kathy Hochul will sign it. States like California, Maryland, Massachusetts, and New Jersey are also considering similar laws, with environmental groups pushing them as a priority.
These “climate Superfund” measures are inspired by a 1980 law that makes polluters pay to clean up toxic waste sites. The idea is to charge fossil fuel companies based on their historical contributions to greenhouse gas emissions.
The money collected could be used to deal with disasters like the recent flooding in Vermont. Other states might use the funds to address problems caused by sea level rise, wildfires, or droughts.
However, these measures might face legal challenges from the oil and gas industry, which could discourage some state leaders from pursuing them. There are also concerns that the bills could lead to higher gas prices, although supporters argue this won’t be the case.
Despite potential challenges, leaders in other states are encouraged by Vermont’s actions. However, if Governor Hochul vetoes New York’s bill, it could slow down progress in other states.
Vermont’s new law, effective July 1, requires the state treasurer to calculate the damages from climate-related disasters and the costs of adapting to these changes. The state will then collect money from companies responsible for significant greenhouse gas emissions over the past 30 years, based on their contribution to global emissions.