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Vermont defends landmark climate law as Trump administration and oil industry sue

Vermont is preparing for a drawn-out legal fight after President Trump’s Justice Department joined fossil fuel interests in suing to block the state’s new Climate Superfund law, which seeks to make oil companies pay for decades of greenhouse gas emissions.

Nina Sablan reports for Inside Climate News.


In short:

  • Vermont’s Climate Superfund Act, passed in 2024, aims to hold fossil fuel companies financially responsible for damages caused by their past greenhouse gas emissions from 1995 to 2024.
  • The Trump administration sued Vermont and New York on May 1, arguing the laws interfere with federal authority and burden domestic energy production, echoing industry opposition.
  • Despite mounting legal costs and political resistance, Vermont leaders say the law is constitutional and necessary to fund climate adaptation in a state increasingly battered by extreme weather.

Key quote:

“Frankly, the president is using the Department of Justice as a political shield for his allies in the oil industry.”

— Ben Edgerly Walsh, the Climate and Energy Program director at the Vermont Public Interest Group

Why this matters:

As climate disasters grow more destructive and expensive, states like Vermont are trying to make polluters — not taxpayers — foot the bill. The Climate Superfund approach doesn’t regulate future emissions; it retroactively charges fossil fuel companies for past harms based on climate attribution science. That distinction is legally important and politically explosive. The stakes are high: Vermont is a small, rural state with limited resources, but its strategy has inspired similar bills in other states and could set a legal precedent. Meanwhile, the fossil fuel industry, with support from the federal government under President Trump, is mobilizing hard to kill it. The outcome will shape how the U.S. distributes the financial burden of climate change, and whether frontline communities can secure relief.

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