Climate Superfund: Costs and Impact on Consumer Prices

This toolkit is designed to help advocates, organizations, and legislators address one of the most common concerns about Climate Superfund legislation: the potential impact on consumer prices.

The fossil fuel industry frequently claims that making them pay for climate damages will lead to higher prices at the pump and increased energy costs for consumers.

However, both economic analysis and real-world evidence demonstrate that these concerns are unfounded.

In fact, Climate Superfund legislation will reduce the costs to communities and taxpayers caused by the escalating climate crisis, including housing, health, and insurance costs, while investing in local services, including community resilience, disaster preparation and recovery.

Below you’ll find detailed explanations, talking points, and resources to help communicate why Climate Superfund bills are designed to make polluters pay — not the public.

Messaging

For more, contact cassidy@fossilfree.media

1

The costs of climate change are already being paid – except right now they're being paid solely by taxpayers and communities instead of the companies responsible.
2

These companies made trillions in profits while knowingly causing climate damage. They can afford to pay their fair share without raising prices.
3

Just like we make companies clean up toxic waste sites, big oil must clean up their climate disasters.

FAQs

"Won't companies just raise prices to cover these costs?"

Actually, they can’t without losing customers to competitors. These payments are a fixed assessment based on past pollution. They do not affect ongoing production costs. Even if one company tried to raise prices, they would lose business to other companies. That’s why economists across the political spectrum agree these costs can’t be passed on to consumers.

"What happens if multiple states adopt these bills?"

Even if every state adopted similar legislation, the total payments would still represent a small fraction of industry profits for a small number of companies. If companies claim they can’t afford to pay for the damage they’ve caused without raising prices, that’s a clear sign we need to accelerate the transition to cleaner energy sources.

"Could this bankrupt oil companies or disrupt supply?"

Far from it. These companies are recording the highest profits in their history. When ExxonMobil can spend $20 billion on stock buybacks, they can afford to pay for the damage they’ve caused without disrupting their operations.

"How will this legislation make things more affordable for families?"

Climate Superfund legislation helps families in several ways:

Local tax increases are not required to pay for climate damage
It protects home values by funding community resilience
It reduces the devastating financial impact of climate disasters on families and local governments

"What's the return on investment for communities?"

Every dollar spent on climate resilience saves communities in future disaster costs. By making polluters pay their fair share now, we’re investing in:

Protected property values
Stable insurance markets
Resilient infrastructure
Preserved local services
Reduced disaster recovery costs

"How will funds be used to prevent future climate costs?"

The funds will support projects and programs specifically designed to mitigate and respond to climate damages. All funded programs must include strategies to increase employment opportunities while addressing climate impacts. The program ensures coordinated action through regular consultation with key state agencies to implement the most effective solutions.