New York to Impose $75 Billion Penalty on Fossil Fuel Companies for Climate Damages

On Thursday, New York Governor Kathy Hochul signed a groundbreaking law that mandates fossil fuel companies to pay $75 billion in penalties over the next 25 years. This move aims to hold these companies accountable for their contributions to climate change and alleviate the financial burden on taxpayers for climate adaptation and mitigation costs. Funds collected from the penalties will be allocated to a Climate Super Fund dedicated to mitigating the effects of climate change starting in 2028. This includes the adaptation of essential infrastructure such as roads, public transportation systems, water and sewer systems, and buildings. The penalties will be imposed on companies that emitted over 1 billion tons of greenhouse gases between 2000 and 2018, as determined by the New York Department of Environmental Conservation. New York Senator Liz Krueger stated, "The Climate Change Super Fund Act is now in effect, and New York has made a statement that will be heard worldwide: the companies most responsible for the climate crisis will be held accountable." The passage of the law comes amidst reports that major oil companies have made over $1 trillion in profits since January 2021.