Supreme Court Skeptical of Climate Lawsuits Against Fossil Fuel Companies

The Supreme Court on Monday appeared unconvinced by arguments that Colorado officials should be allowed to sue fossil fuel producers in state court over the impacts of climate change. The case, which could have significant implications for the energy industry, marks the first of the new term for the high court.

During oral arguments, Chief Justice John Roberts expressed concern that allowing such suits could lead to a flood of similar lawsuits across the country. "Presumably if you prevail, the next day a municipality in every single state will file a lawsuit, copy your pleadings and then there’ll be at least 50…. causes of action filed. How do you think that will work out?" Roberts asked an attorney representing Boulder County officials. "There’s always going to be greenhouse gas emissions affecting every state."

Eight justices heard the case, as Justice Samuel Alito recused himself due to scrutiny over his holdings in oil and gas companies.

The lawsuit originated in 2018 when Boulder, Colorado, sued Exxon Mobil and Suncor Energy, seeking to hold them financially responsible for the costs of adapting to climate change. The companies argued that federal law barred the suit, but the Colorado Supreme Court ruled that the case could proceed.

The Supreme Court is considering whether the Colorado Supreme Court's decision is reviewable and, more critically, whether the U.S. Constitution and the federal Clean Air Act prevent states from hearing such claims.

Justice Brett Kavanaugh pointed to previous rulings that suggested interstate air and water pollution are matters of federal law. "We’ve been talking a lot about these constitutional principles," Justice Elena Kagan remarked to an attorney for Boulder, suggesting that the Clean Air Act might be a more direct route for their claims. "But I’m wondering if that isn’t a more natural and simpler route towards their view of what should happen here."

Both Roberts and Justice Amy Coney Barrett questioned why Boulder was targeting energy producers instead of emitters like industrial manufacturers. "The fuel production itself doesn’t have the universal harm that we’re talking about," Roberts noted.

Representing Boulder County, attorney Kevin Russell argued that there is no legal basis to preempt state court lawsuits, asserting that "Since the founding, states have had the power to provide tort remedies for injuries occurring within their borders, even when the conduct causing those injuries occurred elsewhere."

If the Supreme Court deadlocks with a 4-4 vote, the lower court's ruling allowing the suit to proceed will stand. A decision in Suncor Energy Inc. v. Commissioners of Boulder County is expected by the end of June.