Vermont has emerged as the first state in the United States to mandate that fossil fuel companies compensate for climate damages, marking a significant triumph for climate activists advocating for increased financial accountability from polluters.
This northeastern state joins several others where lawmakers have championed bills aiming to hold oil and gas companies responsible for a portion of regional greenhouse gas emissions, transferring the associated costs to them.
Jamie Henn, spokesperson for the climate campaign group Make Polluters Pay, celebrated the landmark decision, stating, “Vermont just made history. For the first time, a state is asking Big Oil to pay their fair share for climate damages.”
Quantifying the Costs of Greenhouse Gas Emissions
While the new law does not specify a monetary amount, it mandates the state’s treasurer to submit a comprehensive report by January 2026. This report, compiled in collaboration with the state’s agency for natural resources, will detail the cumulative cost of greenhouse gas emissions over roughly the past two decades to Vermont’s residents.
The assessment will encompass the impact of these emissions on various aspects of life, including public health, natural resources, agriculture, economic development, and housing.
A Growing Trend in Climate Accountability
Lawmakers in Maryland, Massachusetts, New York, and California have all introduced similar bills this year, although none of their respective state legislatures have yet successfully passed them. These efforts stem from the “polluter pays” principle, traditionally applied to companies that contaminate water supplies with chemicals.tunesharemore_vert
The bills are supported by a rapidly advancing field of science that seeks to quantify the extent to which specific human actions contribute to climate change. Scientists have developed methods to calculate the historical emissions of various sectors and companies, paving the way for greater accountability.
Vermont’s Republican Governor Phil Scott permitted the bill to become law without his signature, voicing concerns about the potential costs for the small state to confront the fossil fuel industry alone. He warned that “taking on ‘Big Oil’ should not be taken lightly.”
Anticipation of Legal Challenges and Industry Response
The new legislation aims to face expensive legal battles from fossil fuel companies. ExxonMobil did not immediately comment on the matter, while Chevron declined to provide a statement. The American Petroleum Institute, an industry lobby group, criticized Vermont’s law as “yet another step in a co-ordinated campaign to undermine America’s energy advantage.”
California’s Lawsuit Against Oil Companies
Vermont’s move follows California’s September lawsuit against several major oil companies, including Exxon, Shell, and BP. The lawsuit alleges that these companies deliberately deceived the public for decades about the devastating impact of fossil fuel combustion on the planet.
The civil lawsuit claims that oil and gas executives were aware of the catastrophic consequences of fossil fuel reliance but actively suppressed this information through disinformation campaigns. This deception, the lawsuit argues, delayed societal action on global warming, leading to billions of dollars in damages from droughts, wildfires, and storms in California.