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New York Implements $75 Billion Fine on Fossil Fuel Companies for Climate Damage
NEW YORK (Reuters) – In a landmark decision, New York state will impose fines totaling $75 billion on fossil fuel corporations over the next quarter-century, as part of a new legislation signed into law by Governor Kathy Hochul.
This groundbreaking law is designed to transfer some of the financial burden associated with climate change recovery and adaptation from taxpayers to the oil, gas, and coal industries deemed responsible. The newly collected funds will be allocated toward addressing and mitigating the effects of climate change, encompassing infrastructure enhancements such as roads, transportation systems, water management, and buildings.
Senator Liz Krueger, a Democrat and co-sponsor of the bill, expressed strong support, stating, “New York has fired a shot that will be heard round the world: The companies most responsible for the climate crisis will be held accountable.”
The fines levied on fossil fuel companies will be determined based on their greenhouse gas emissions from 2000 to 2018, with the penalty payments directed into a Climate Superfund starting in 2028. This initiative targets any corporation identified by the New York Department of Environmental Conservation as responsible for releasing over 1 billion tons of greenhouse gases globally.
With this legislation, New York follows in the footsteps of Vermont, which enacted a similar measure earlier in the summer. The structure of these laws draws inspiration from established state and federal superfund regulations that hold polluters financially accountable for cleaning up environmental hazards.
According to Krueger, the long-term costs associated with repairing the damages and adapting to the escalating severity of weather conditions driven by climate change are projected to exceed $500 billion by the year 2050. She pointed out that major oil companies have accrued more than $1 trillion in profits since January 2021, despite being aware since the 1970s of the links between fossil fuel extraction and climate change.
In response to the legislation, energy companies are expected to mount legal challenges, contending that the new law is overridden by federal regulations governing energy production and pollution control.
Source
finance.yahoo.com