Vermont Mandates Oil Firms to Pay for Climate Change Damage
TL/DR –
Vermont has become the first US state to pass a law requiring fossil fuel companies to pay for damage caused by climate change. The legislation will affect companies involved in the extraction of fossil fuels or the refining of crude oil attributable to over 1 billion metric tons of greenhouse gas emissions between 1995 and 2024. The state will assess the cost of these emissions on public health, the economy, and other areas, and use the collected funds for infrastructure upgrades and other climate change mitigation efforts.
Vermont Enacts Climate Change Law
Vermont has become the first state to enact a law mandating fossil fuel companies to pay for climate change damage. The move comes in the aftermath of the state experiencing severe summer flooding and other weather-related disasters.
Despite his concerns about the costs of battling “Big Oil” alone, Republican Gov. Phil Scott allowed the bill to pass without his signature. He acknowledged the urgent need to address climate change effects that have heavily impacted the state.
The controversial law, which the Governor let pass without his signature, requires fossil fuel companies to pay for damages related to their greenhouse gas emissions. It’s been hailed as a significant step towards a polluter-pays model.
Last summer’s torrential rains caused massive destruction in Vermont, resulting in significant losses for businesses and homeowners. Several businesses only recently reopened while many homeowners were left with flood-damaged homes.
The law stipulates that by Jan. 15, 2026, a report detailing the total cost to Vermont from greenhouse gas emissions from 1995 to 2024 must be presented. The assessment will consider the effects on public health, agriculture, economic development, housing, and other areas.
Paul Burns, executive director of the Vermont Public Interest Research Group, praised the law: “Vermont is going to hold the companies most responsible for climate-driven floods, fires and heat waves financially accountable for a fair share of the damages they’ve caused.”
Similar actions are being considered in Maryland, Massachusetts, and New York. However, the American Petroleum Institute has expressed strong concerns, citing legal, equal protection, and due process rights issues.
Despite the anticipated legal hurdles, State Rep. Martin LaLonde believes Vermont has a solid legal case and emphasized the importance of holding liable corporations accountable for their role in the climate crisis.
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