Supreme Court Weighs Whether Big Oil Can Be Blamed for Climate Change

The U.S. Supreme Court heard arguments on Monday about a major case that could change how oil companies are held responsible for climate change. The city and county of Boulder, Colorado, are suing two big oil companies — ExxonMobil and Suncor Energy — for billions of dollars in damages. Boulder says the companies misled the public about how fossil fuels cause global warming. The justices had tough questions for both sides, and it was not clear how they would vote.

The case started back in 2018. Boulder officials filed the lawsuit in Colorado state court, asking for money to cover damage caused by climate change. They say extreme drought, health problems, and harm to roads and buildings are linked to warming caused by burning fossil fuels. The Colorado Supreme Court allowed the case to move forward last year. Then ExxonMobil and Suncor asked the U.S. Supreme Court to step in.

The oil companies argue that climate change is a national issue, not a local one. Since greenhouse gases cross state lines, they say the case belongs in federal court — not state court. Some conservative justices seemed to agree. Justice Brett Kavanaugh said four earlier court rulings made it 'crystal clear' that Boulder's claims cannot be brought in state court. Justice Amy Coney Barrett said she agreed with him.

But not all the justices saw it that way. Justice Elena Kagan compared Boulder's case to past lawsuits against tobacco companies and opioid drugmakers. Those cases led to huge settlements. 'This is the same kind of lawsuit against the same kind of actors,' Kagan said, suggesting the Boulder case should be allowed to go forward. She is considered one of the court's liberal justices.

Some justices thought it might be too soon for the Supreme Court to even look at the case. Justice Ketanji Brown Jackson said the case was still in its early stages. 'We are really early in this case,' she said. 'This is kind of premature.' This means the court could send the case back to the Colorado courts to keep playing out before the Supreme Court gets involved.

The stakes in this case are very high. If Boulder wins, it could open the door for thousands of other cities and towns to sue oil companies for climate damage. That could lead to settlements worth many billions of dollars. The oil companies warn that such huge payouts could bankrupt the entire industry. Dozens of states, counties, and cities — including San Francisco and places in Massachusetts and Hawaii — have filed similar lawsuits.

There is another twist in this case. Justice Samuel Alito stepped away from the case in September. He did not say why, but he had owned stock in two oil companies. That raised concerns about whether he could be fair. Without him, only eight justices will vote. If they split 4–4, the Colorado Supreme Court's earlier ruling — which allowed the case to go forward — would stand.

Congress may also play a role. Both the U.S. House and Senate are looking at laws that would protect oil companies from these kinds of state lawsuits. If such a law passes, it could make cases like Boulder's case moot, meaning they would no longer matter in court. A final decision from the Supreme Court is expected before the end of its term in June or July.