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Video: Who Pays for Climate Change: Energy Companies or the People?
September 03, 2026
Transcript
Who Pays for Climate Change? Fossil Fuel Companies, Taxpayers and the New York Climate Superfund Law
Who Should Pay for Climate Change?
Climate change is costing states billions of dollars. But who should pay for it? Should it be taxpayers or consumers? Or should the energy companies that made enormous profits producing and selling fossil fuels for decades be the ones to pay?
That is the much bigger question behind a major federal court ruling out of New York State.
Attorney Tracy Paulsen Explains the Climate Superfund Case
I’m attorney Tracy Paulsen, founder of Rightful Legal. We’re a law firm that focuses on environmental change and protection.
New York Climate Superfund Act Explained
A federal judge has blocked New York’s Climate Change Superfund Act, which would have required major fossil fuel companies to contribute $75 billion over 25 years toward climate-related infrastructure and adaptation costs.
The court ruled that New York’s system was preempted by federal law.
But here’s what the decision does not answer.
Who Ultimately Pays Climate Change Costs?
The question is, is it fair for ordinary everyday citizens to ultimately bear these costs of climate change?
States are already spending money addressing flooding, extreme weather, coastal protection, infrastructure damage, heat, and other effects associated with a changing climate.
Those bills do not disappear because a court strikes down one method of making energy companies contribute and be responsible. Someone still has to pay.
Taxpayers, Homeowners and Consumers
And if states cannot recover that money from fossil fuel producers, a significant portion of those costs could ultimately fall on taxpayers, homeowners, businesses, insurance policyholders, utility customers, or the federal government.
That raises an important fairness argument.
If companies generated enormous revenues from fossil fuels while the environmental consequences accumulated over decades and decades, should the public now be responsible for the entire cost of adapting to those consequences?
The Polluter Pays Principle
Supporters of laws like New York’s say no.
Their argument is essentially the polluter pays principle, where companies whose products substantially contributed to the problem should bear some portion of the cost of addressing it.
And there is another question as well.
As renewable technologies have expanded, should energy companies bear greater responsibility for continuing substantial investment in fossil fuel production rather than accelerating the transition toward lower-emission alternatives?
The Energy Industry’s Response
Energy companies have a response to that.
They argue that they produce fuels demanded by consumers, businesses, transportation systems, and governments.
That modern-day society has depended heavily on those fuels, and that enormous state assessments could ultimately be passed back to the consumer through higher energy costs.
State Authority vs. Federal Law
So, the issue is not as simple as choosing between energy companies versus consumers.
The real legal question is whether states have the authority to decide how those costs should be allocated.
And the New York ruling says there are significant federal limits on how states can do just that.
That could have enormous consequences nationwide.
Potential Nationwide Consequences of Climate Superfund Laws
If other state-backed climate superfund laws are also struck down, lawmakers may have to find entirely different legal mechanisms for requiring fossil fuel companies to contribute to climate adaptation costs, or Congress may ultimately have to address the issue at the federal level.
Who Will Pay for Future Climate Damage?
Because regardless of where you stand politically on climate change, one economic reality remains.
If climate-related damage requires billions or even trillions of dollars in adaptation, somebody is going to have to pay for it.
The next major legal battle may be over who that should be.
Climate Change Advocacy and Legal Questions
If you have any questions about this or how you can promote advocacy in your own state or at the local level, because climate change is affecting us all and we all need to take responsibility, you can reach out to me at 617-821-5856.
If you found this informative, please like or share.
Thank you so much.
