After historic flooding, Vermont calls for “Big Oil” to pay its share of the damages.

Climate change has become a serious issue across the globe. Freak weather events, increased global temperatures and glacial melt, among other crises, have made it almost impossible to ignore. And for residents in one state, climate change has come right to their doors for what lawmakers intend to make the last time.

Vermont suffered severe flooding during the summer of 2023—the water completely submerged parking meters in the capital city of Montpelier. Thousands of residents lost cars, homes and businesses. According to the National Weather Service, the damages from this event alone rivaled—and even exceeded—the damage caused by Hurricane Irene back in 2011.

Now, the state government has passed a bill forcing fossil fuel companies to pay for a portion of the damages caused by climate change. Vermont is now the first state in the Union to take these organizations to task for externalities caused by fossil fuel emissions. According to the bill, the Agency of Natural Resources will create a report by 2026 that estimates the cost of climate change-based damage since 1995. This will examine aspects such as public health, agriculture and economic development.

The bill has been lauded for its progressive approach to climate justice, as holding companies accountable for pollution is, perhaps unsurprisingly, very widely supported. However, several Vermont politicians have also expressed concern over what will surely turn into a knock-down, drag-out legal battle come the report’s publication.

This bill marks a huge turning point in the climate justice movement. Although the legal battle has yet to begin, the precedent set by this bill is groundbreaking. The federal government has taken little serious action toward climate change reparations, as they are a divisive issue on a national level. Some consider the process to have very little legal basis, which naturally spawns skepticism that the legislation can actually be enforced.

However, regardless of how the bill has been received, the progress here is undeniable. There’s something to be said for the power of precedent in legal situations. Reparations have been divisive in the court system on account of being largely untested in a legal setting. Most court cases on a federal level are decided largely based on the results of similar cases in the past. Much of the heel-dragging over climate change, then, can be explained by how new and untested many of these legal approaches are.

It’s far more difficult to pass a bill at the federal level than the state, especially when trying to attack such an inflammatory issue. That said, states taking action—successful or not—could begin to wear down that resistance. If Vermont manages to extract reparations from the targeted companies, other states may follow suit. With enough states unified towards climate reparations, the federal government may be forced to take a stance. It likely won’t be for some time, but Vermont’s actions now are potentially paving the way for a massive shift in the governmental response to climate change in future years.