Trump's Climate Rule Reversal May Leave Oil Firms Vulnerable to Lawsuits
Trump's Climate Rule Reversal May Leave Oil Firms Vulnerable to Lawsuits

The Trump administration's repeal of the 'endangerment finding' – a 2009 determination that greenhouse gases threaten public health – could inadvertently weaken a legal shield protecting fossil fuel companies from climate lawsuits, experts warn.

The EPA's rule, which eliminates federal limits on climate-warming emissions from vehicles and other sources, was intended to benefit oil companies. However, by removing federal regulation, it may undermine the industry's argument that such suits are pre-empted by the Clean Air Act.

This legal shield faces a key test as the US Supreme Court considers a petition from oil companies to dismiss a climate lawsuit filed by Boulder, Colorado. Dozens of state and local governments have pursued such cases, and New York and Vermont have enacted 'climate superfund' laws requiring oil majors to pay for climate disasters.

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Legal experts say the repeal could strengthen public nuisance claims and weaken industry defences. Pat Parenteau of Vermont Law School noted that oil companies can no longer argue that federal law pre-empts state actions. Similarly, Sarah Light of the University of Pennsylvania said the repeal undercuts Justice Department challenges to state climate superfund laws.

The Supreme Court's upcoming decision on the Boulder case could set a precedent. Some industry groups, like the Edison Electric Institute, warned last year that repeal might trigger increased litigation, reflecting nervousness among companies.

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