Climate Change

The U.S. Supreme Court heard oral arguments in a case brought by Boulder, Colorado, seeking damages from ExxonMobil and Suncor over claims the companies deceived the public for decades about fossil fuels' role in climate change. The justices are deciding only whether the lawsuit can proceed in state court, not whether the companies are liable, but the outcome could shape dozens of similar suits filed by municipalities nationwide.

The court's three liberal justices appeared sympathetic to Boulder, while Justice Brett Kavanaugh was the most vocal supporter of the energy companies' position. Chief Justice John Roberts raised concerns that a win for Boulder could trigger a wave of copycat lawsuits, but also pushed back on the companies' argument that such claims are governed solely by federal law. Justice Samuel Alito, who holds fossil fuel stock, recused himself, meaning a tie would leave the Colorado Supreme Court's ruling intact and let the case move forward. A decision is expected by late June or early July.

A coalition of 25 states and cities, led by New York Attorney General Letitia James, has filed suit against the Environmental Protection Agency over its repeal of the 2024 Carbon Pollution Standards, which required power plants to cut greenhouse gas emissions using carbon capture technology. Michigan, California, and other states joined the petition filed in the U.S. Court of Appeals for the D.C. Circuit, arguing the EPA rescinded the rule without weighing reasonable alternatives or the health and climate costs of increased pollution.

Michigan Attorney General Dana Nessel said the repeal would worsen extreme weather risks already facing the state, including heat, storms, flooding, and wildfire smoke. Power plants are the second-largest source of U.S. greenhouse gas emissions after vehicles, accounting for roughly a quarter of the country's carbon dioxide output. The coalition also notified the EPA that it intends to sue separately over the agency's failure to regulate emissions from existing natural gas power plants, signaling further legal battles ahead over the Trump administration's environmental rollback efforts.

The Supreme Court is set to hear arguments in Suncor Energy (U.S.A.) Inc. v. Board of County Commissioners of Boulder County, a case testing whether local governments can use state tort law to seek damages from energy companies for climate-related harms tied to global carbon emissions. Boulder County filed its suit in Colorado state court in 2018, arguing that fossil fuel producers should pay damages for local impacts of climate change. It is one of dozens of similar suits filed by cities, counties, and states nationwide, including a $51.5 billion claim from Multnomah County, Oregon.

Critics argue these suits are an attempt to achieve carbon-tax-like outcomes through litigation rather than legislation, and that allowing them to proceed would let a single jurisdiction effectively dictate energy policy nationwide, raising energy costs for consumers. Supporters of the litigation maintain they seek only monetary damages, not regulatory changes. The Court's ruling could determine whether similar climate liability suits against the energy industry continue across the country, with major implications for energy markets and producers.