As climate adaptation and mitigation costs escalate, a wave of state climate superfund legislation is emerging across the United States. This novel approach to climate accountability, pioneered by Vermont and New York, imposes retrospective financial responsibilities on major carbon emitters to fund state climate resilience projects. Payment obligations under New York and Vermont’s laws will be established in 2026 and 2027, respectively.
Five other states are now considering similar legislation, and Oregon is additionally considering creating a private cause of action against emitters for individuals harmed by extreme weather events. This trend of state superfund laws signals a growing interest by states to regulate climate issues at a time when the federal administration has indicated its intent to reduce regulation and enforcement in this area. While legal challenges may delay the implementation of these state laws or reduce their scope, states are unlikely to abandon their commitment to regulating emissions. Companies, particularly in the energy sector or high-emitting industries, must prepare for a patchwork of potentially overlapping and inconsistent regulations and financial obligations related to greenhouse gas (GHG) emissions
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