California is taking a bold step in the fight against climate change by attempting to use consumer protection laws to seize profits from some of the world’s biggest oil companies. The state attorney-general is accusing these companies, including ExxonMobil, Chevron, Shell, BP, and ConocoPhillips, of deceiving the public for decades over their role in climate change. The lawsuit alleges that the companies spread misinformation, sowed doubt about climate science, and falsely claimed that some of their products are “clean”.
The new state law invoked by California allows claimants to target company profits that can be identified from the violation of consumer protection and advertising laws. The lawsuit seeks to deposit the profits generated by these oil companies into a victims’ restitution fund. This move comes as US states and cities are increasingly turning to the courts to hold oil and gas companies accountable for their role in climate change and to cover climate-related costs. Globally, the number of climate-related court cases has doubled in the five years between 2017 and summer 2023.
The fossil fuel industry has seen record profits in recent years due to surging energy prices following Russia’s invasion of Ukraine in 2022. The top-10 listed US fossil fuel producers have amassed a combined net income of $313bn in the first three years of the Biden administration. Oil and gas production in the US hit record levels in 2023. California’s lawsuit alleges that oil and gas executives knew the catastrophic consequences of relying on fossil fuels but suppressed this information, leading to delayed societal responses to global warming and resulting in billions of dollars in damages including droughts, wildfires, and storms.
The lawsuit also alleges that oil and gas companies, along with industry groups like the American Petroleum Institute, made false and misleading statements in advertisements placed in major US news outlets. The defendants, including Shell, BP, and ConocoPhillips, have responded by saying that climate policy should be determined by Congress and that litigation is not the appropriate venue to address climate change. They believe that smart policy from government and action from all sectors are necessary to drive progress. The defendants named in the lawsuit have not provided immediate comments in response to the allegations. California’s efforts mark a significant step in holding oil companies accountable for their contribution to climate change and seeking justice for the damages caused by their actions.
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