The earth is heating up and fast – leaving a number of negative effects in the wake. According to the United Nations, “Big Oil” companies are the largest contributor to climate change whereby fossil fuels account for 75% of greenhouse gas emissions, trapping heat and increasing global temperatures.
Following a catastrophic flooding last summer that resulted in $1bn in damages, Vermont’s government is ready to protect its people by enacting a law that ensures companies pay a share of the damage caused by climate change. Earlier this year, a bill was tabled and passed the state’s legislature with the support of Democrats which has since then become law without Governor Phill Scott’s signature. Even without his signature, he understands the need to seek funding, despite the state having the lowest GDP in the country.
The Climate Superfund Act modelled after the Environmental Protection Agency requires companies that contaminate the environment to do clean up work themselves or compensate the government for the damages. The state’s treasurer in collaboration with the Agency of Natural Resources, would submit a report by January 2026 accounting for the companies’ emissions between 1995 and 2024. This report would have the assessment that show the effects on housing, health, agriculture and many other areas. This data explicitly calculates how much a company is to pay in the case they have emitted a total of 1 billion metric tons of greenhouse gases in that time range.
The money accumulated through this process will then be channelled into the superfund: used by the state to better adapt to climate change as well formulating mitigation strategies. The funds will also help in the development of climate change resilient infrastructure such as weatherproof schools, cleaning up of affected neighbourhoods as well as addressing public health concerns stemming from climate change.
By holding such companies accountable for their actions, the state and its lawmakers are hopeful that this new law will help them overcome climate related challenges in the near future. It is only right to share the burden equally among the big oil companies rather than burdening the Vermont taxpayer which would be unfair. However, the American Petroleum Institute, the largest oil and gas lobby group, opposed the bill by saying it violated due process and equal protection rights. The chair of the state’s house judiciary committee, Martin LaLonde, believes that they have a solid legal case as corporations will take the fight to court.
Other states like Maryland, New York and Massachusetts are considering such measures. The state of Vermont has pioneered something great that will allow states and countries to cope and adapt to climate change should they choose to implement the same law. It is our hope that come 2026, the necessary report needed will be availed and the necessary steps moving forward concerning the allocation of the money in the superfund towards the different agendas, will be actualized.