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Vermont Enacts State Climate Superfund Act, Requiring Oil Companies to Pay for Climate Damages

May 31, 2024, 05:25 PM

In a pioneering legislative move, Vermont has become the first state in the United States to enact a law requiring oil and gas companies to pay for damages caused by climate change. The law, known as the State Climate Superfund Act, aims to hold fossil fuel companies financially accountable for the environmental damage their products have caused over the years. This legislation is modeled on federal law and seeks to assess penalties for emissions from 1995 to 2024, potentially totaling billions of dollars. The funds collected will be used to help the state adapt to climate change, develop more resilient infrastructure, and recover from extreme weather events such as catastrophic summer flooding. The law is expected to face legal challenges from the fossil fuel industry, which is gearing up for lawsuits. Vermont's move is seen as a historic blow to fossil fuel companies and a significant victory for environmental campaigners pushing for greater corporate accountability in addressing climate change. The legislation was passed in Montpelier, Vt., and targets the state's largest polluters.