Supreme Court Rules in Favor of Environmental Advocates, Allowing Major Climate Change Lawsuits Against Oil Companies to Move Forward in State Courts

In a major victory for environmental advocates, the Supreme Court on Monday ruled that lawsuits brought by municipalities against major oil companies can move forward in state courts. The lawsuits seek to hold the companies accountable for the effects of climate change.

The five cases involve cities and municipalities in Colorado, Maryland, California, Hawaii and Rhode Island. The Supreme Court’s decision is a blow to the oil companies, who had been desperately trying to avoid trials in state courts.

The ruling comes as the Biden administration is pushing for a major shift to clean energy. In March, President Joe Biden signed into law one of the biggest clean-energy spending packages the world has ever seen. The package includes hundreds of billions of dollars in incentives for zero-carbon power stations, electric vehicles, lithium mining, and hydrogen fuel pipelines.

The Environmental Protection Agency has also proposed the nation’s strictest standards ever on tailpipe pollution from new cars and trucks sold starting in 2027. Automakers will have the option to comply by manufacturing more electric vehicles.

The legal issue at hand is whether the lawsuits should be heard in state court or federal court. Litigants care because of the widely held view that plaintiffs have a better chance of winning damage awards in state court.

The Supreme Court’s decision is a major victory for environmental advocates and a major setback for the oil companies. It remains to be seen what the outcome of the trials will be.