A growing number of public nuisance lawsuits regarding climate change are moving through state courts. These legal actions target energy companies and could lead to significant financial penalties that may be passed down to consumers. If successful, these lawsuits could act as a hidden tax on energy, potentially increasing prices at the pump and on utility bills without direct legislative approval.
Log in to join the discussion
This is a classic case of trying to use the judiciary to create a carbon price because the legislative process is stalled. Using public nuisance law to force a payout is an indirect way to implement a carbon tax, but it lacks the transparency of a formal policy.
True, but if these judgments hit the balance sheets of major utilities, the first thing they will do is request rate hikes from the commissions. I wonder how many of these firms have actually hedged for this specific legal risk in their long term capital plans.
Basically, cities are suing energy companies for climate damages. If the companies lose, the cost of those settlements will likely end up in your monthly electric bill or gas prices. It is a weird way to do climate finance.
