On Thursday, New York Governor Kathy Hochul signed a groundbreaking law aimed at holding fossil fuel companies accountable for their role in climate change.
This legislation will impose a staggering $75 billion in fines over the next 25 years, effectively shifting the financial responsibility of climate recovery and adaptation away from taxpayers and onto the shoulders of the industry deemed most responsible.
The funds collected will be vital for addressing climate change impacts, funding necessary upgrades to critical infrastructure such as roads, public transport systems, water supply networks, sewage facilities, and other essential buildings.
Significance of the Initiative
Democratic Senator Liz Krueger, a co-sponsor of the bill, commented on the significance of this initiative.
She expressed that this moment marks a turning point, where major companies that have contributed significantly to the climate crisis will finally face consequences for their actions.
Funding and Accountability
The fines will be calculated based on the greenhouse gas emissions these companies released from 2000 to 2018.
Starting in 2028, firms identified by the New York Department of Environmental Conservation as responsible for over one billion tons of global emissions will be required to contribute to a Climate Superfund.
With this new legislation, New York becomes the second state to establish similar measures, following in the footsteps of Vermont.
This move aligns with both state and federal superfund laws that compel polluters to pay for the clean-up of environmental hazards.
Future Challenges
Senator Krueger also highlighted the daunting costs New York faces as it works to remedy the damage caused by climate change, noting that these expenses could exceed $500 billion by 2050.
She pointed out that since early 2021, major oil companies have collectively amassed over $1 trillion in profits, despite having known about the link between fossil fuel extraction and climate change since at least the 1970s.
In light of this new law, energy companies are expected to challenge the statute in court, arguing that federal regulations governing energy and pollution take precedence over state legislation.
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Source: Insurancejournal
