The U.S. Supreme Court heard oral arguments this month in a landmark case involving Suncor Energy and ExxonMobil. The case will determine whether lawsuits seeking to hold energy companies liable for climate-related damages may proceed in state court or must be heard in federal court.
The companies argue that cases involving interstate and international emissions belong in federal court and are preempted by federal law, including the Clean Air Act.
Boulder, Colorado, filed its lawsuit in 2018. It alleges the companies deceived the public about the climate risks of fossil fuels and seeks monetary damages to cover costs from climate-related impacts, including wildfires and floods.
Municipalities across the U.S. have filed dozens of similar lawsuits. A ruling allowing the cases to proceed in state courts could expose Suncor and the broader energy industry to significant legal and financial risks. The court's decision is expected next year.