US court blocks New York's $75 billion climate damages law

A federal judge has invalidated a New York law that sought to compel fossil fuel producers to contribute $75 billion toward climate change adaptation and repair costs. The ruling, delivered by US District Judge Brenda Sannes, concluded that the state's approach encroached upon federal jurisdiction.

The law, signed by Governor Kathy Hochul in 2024, was designed to make companies responsible for substantial greenhouse gas emissions collectively pay $3 billion annually for 25 years. The funds were intended for infrastructure projects, including coastal wetland restoration and upgrades to roads, bridges, and drainage systems, to address damage from extreme weather and bolster resilience.

Judge Sannes determined that the law conflicted with the need for a uniform national energy and environmental policy. She noted that the federal Clean Air Act designates the Environmental Protection Agency as the primary regulator of greenhouse gas emissions. Additionally, the judge ruled that attempting to collect damages from foreign producers was unconstitutional, as it was preempted by foreign affairs doctrine.

The legal challenge was brought by fossil fuel interests, business groups including the US Chamber of Commerce, 22 Republican state attorneys general, and the Environmental Protection Agency. The Justice Department welcomed the decision, stating it aligns with the president's directive to protect American energy from state overreach.

Climate activists have urged the state administration to appeal. A spokesperson for Governor Hochul said taxpayers should not bear the cost of pollution damage and that the administration is reviewing the ruling to decide on next steps. The Trump administration has also previously challenged similar climate laws in Michigan, Hawaii, and Vermont.