States want to tax fossil fuel companies to create climate change superfunds
Illinois lawmakers plan to introduce a climate change superfund bill in the state legislature this session, the latest in a growing number of states seeking to make fossil fuel companies pay up for the fast-growing financial fallout of climate change.
As the costs of global warming rise—in the form of home insurance premiums, utility bills, health expenses, and record-breaking damages from extreme weather—local advocates are increasingly pushing states to require that fossil fuel companies contribute to climate “superfunds” that would support mitigation and adaptation.
Illinois State Rep. Robyn Gabel, who will introduce the bill in the House, said she is motivated by the growing threat of flooding and heat waves in the state.
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”