New York to Charge Oil Companies $75 Billion to Pay for Infrastructure to Cope with Climate Change – ESG Today

New York State Governor Kathy Hochul announced the signing of the Climate Change Superfund Act, a new piece of legislation aimed at requiring fossil fuel companies to pay for a share, proportionate to their contribution to greenhouse gas emissions, of the investments in infrastructure needed to adapt to climate change.

The text of the legislation estimates that the new act is anticipated to require fossil fuel companies to pay approximately $75 billion through 2050, or about $3 billion per year.

The new legislation builds on similar programs in place in New York requiring entities responsible for environmental problems to help pay for cleanup, including the Inactive Hazardous Waste Disposal Site Program and the Oil Spill Fund.

According to the text of the Act, the state will be required over the next few decades to make “huge  investments  in  new or upgraded infrastructure” to adapt to the consequences of climate change, in areas including storm water drainage systems, energy  efficient  cooling systems in buildings, responses to extreme weather events, and coastal wetlands restoration, among others.

The legislation, which noted that fossil fuel combustion is the main driver of climate change, added that research has made it possible to accurately determine the share of greenhouse gases emitted by specific fossil fuel companies over the past several decades, enabling the new program to require companies “to bear a proportionate share of the cost  of  infrastructure  investments  and  other expenses necessary for comprehensive adaptation to the impacts of climate change.”

In a statement released announcing the signing of the new legislation, Hochul said:

“With nearly every record rainfall, heatwave, and coastal storm, New Yorkers are increasingly burdened with billions of dollars in health, safety, and environmental consequences due to polluters that have historically harmed our environment. Establishing the Climate Superfund is the latest example of my administration taking action to hold polluters responsible for the damage done to our environment and requiring major investments in infrastructure and other projects critical to protecting our communities and economy.”