The Climate Superfund Act was passed into law by the Vermont Legislature earlier this year and marks a new era in the effort to hold the world’s largest polluters responsible for the mess they have made. For the first time, Big Oil will be held financially accountable for knowingly damaging our climate and doing nothing to change their actions and the disastrous course they were putting the planet on.
The Act will assess the costs of the climate crisis on Vermont, and then issue cost recovery demands to some of the largest fossil fuel corporations in the world proportional to the carbon pollution from their activities. You can learn more about how exactly the new law works here. The Climate Superfund Act and resulting funds will offer tangible benefits to Vermonters and the state as we adapt to the increasing frequency and severity of climate impacts like flooding, extreme temperatures, and more.
- We’ve been using the “superfund” principle for decades
This isn’t the first time that big polluters have been held accountable for their messes. In fact, the Climate Superfund is based on the EPA Superfund which has been federal law since 1980! This law requires companies that spill toxic chemicals and other hazardous substances to foot the bill for cleanup and remediation. Our new Climate Superfund operates on the same legal principle.
- Big Oil’s assessed damages could reach into the billions of dollars
The Climate Superfund Act requires the State Treasurer to compile a detailed report assessing the financial impact of fossil fuel emissions from 1995 to 2024, even though the oil giants knew about the dangers of climate change and their role in it decades earlier. This report will take into account the costs of climate change that have already been incurred and future costs for adaptation, mitigation, and damages.
- Climate change is costing Vermonters billions of dollars already
In 2023, Vermont suffered 3 federally declared climate disasters totaling at least $2.13 billion in damages – and the costs of the climate crisis are likely to only increase as climate change intensifies. The funds collected by the Climate Superfund Act will go a long way to ensuring that Vermonters do not bear the cost of future disasters alone.
- Funds from the Climate Superfund will protect Vermonters from future disasters
The state is required to use funds collected from Big Oil for “climate change adaptation projects.” This includes preparing our communities, households, and businesses for future climate disruptions, and those projects are broadly defined to include home buyouts, flood protection, upgrades to infrastructure, weatherization, public health initiatives and much more.
- Climate Superfund dollars will help Vermont respond to climate disasters effectively
The Act also allows collected funds to be used for direct disaster response. This could mean financial assistance to affected businesses and households, more swift-water rescue teams, and mental and physical healthcare in the wake of future climate disasters.
What’s next?
The Climate Superfund Act went into effect on July 1, 2024. Now, the Agency of Natural Resources will begin adopting a Resilience Implementation Strategy that outlines the necessary steps and projects needed to make Vermont more resilient to climate impacts. Then, the State Treasurer will begin assessing climate damages since 1995. You can read more about how exactly the Climate Superfund works step-by-step in our linked explainer.