Vermont has made history by being the first state to pass a law mandating fossil fuel companies to contribute towards the damages caused by climate change. This decision came after the state experienced devastating summer floods and extreme weather events.
Republican Governor Phil Scott allowed the bill to become law without his signature, expressing concerns about the financial implications of Vermont taking on “Big Oil” in a legal battle. However, he recognized the necessity of addressing the consequences of climate change.
In a letter to lawmakers, Gov. Scott stated, “I understand the need to secure funding to mitigate the impacts of climate change that have adversely affected our state.” Despite being a moderate Republican in a predominantly Democratic state, Gov. Scott has been at odds with the Legislature but ultimately allowed the bill to pass.
The legislation requires the state treasurer, in collaboration with the Agency of Natural Resources, to provide a report by 2026 on the total costs incurred by Vermonters due to greenhouse gas emissions from fossil fuel companies. These funds would be utilized for various purposes such as upgrading infrastructure and promoting energy efficiency.
Environmental advocates have praised this polluter-pays model, holding fossil fuel companies accountable for the damages caused by climate change. Similar measures are being considered in Maryland, Massachusetts, and New York.
Despite potential legal challenges, Vermont lawmakers believe in the strength of their case. State Representative Martin LaLonde, an attorney, emphasized the importance of ensuring corporations take responsibility for their role in environmental damage.
