FAQs: Polluters Pay Climate Fund Act

The concept of the Polluters Pay Act is simple: those who have contributed the most to climate change should pay to address climate impacts.

The Polluters Pay Climate Fund Act of 2024, introduced by Senator Chris Van Hollen and Congressman Jerry Nadler, is a groundbreaking piece of legislation designed to hold the largest fossil fuel companies accountable for knowingly contributing to the climate crisis. This legislation would require top-polluting fossil fuel companies to collectively pay $1 trillion over 10 years into a fund dedicated to addressing the impacts of climate change and investing in a cleaner, more resilient future. Join us in amplifying this crucial legislation and celebrating a significant step towards climate justice.

Q:  How would the Polluters Pay Climate Fund work?

The Fund would require big polluters to pay a fee based on their share of carbon pollution emitted over the past 20 years. This money would be used to address climate change impacts and support the transition to clean energy.

Q: Which companies would be covered by the Polluters Pay Climate Fund Act?

The Act would apply to fossil fuel companies responsible for at least 1 billion tons of carbon dioxide emissions between 2000 and 2022. This targets only the largest polluters, such as major oil and gas corporations.

Q: Why should these companies pay? Don’t we all pollute?

While individual actions matter, the pollution from large corporations far outweighs personal carbon footprints. These companies have profited from pollution for decades while actively working against climate action. It’s fair that they now contribute to solving the problem they largely created.

Q: How much money would this generate and where would it go?

The Act aims to generate $1 trillion over 10 years. The funds will be used for climate change mitigation, infrastructure upgrades, and supporting the transition to clean energy.

Q: Will this raise energy costs for consumers?

No. The legislation only targets a handful of big polluters, who don’t have enough market share to pass costs to consumers effectively. The resulting infrastructure investments should actually save consumers money in the long run.

Q: How is this different from a carbon price?

Unlike a carbon price, which applies broadly and can be passed to consumers, this Act targets only the largest fossil fuel companies based on their historic emissions. This ensures costs are borne by these companies, not the public.

Q: Is there any precedent for this?

Yes, there are many examples of polluters paying for cleanup, from household waste collection to the Superfund program for toxic waste sites. Moreover, Vermont just passed the nation’s first state climate superfund in May of this year. This legislation extends that principle to address the climate crisis.

Q: How does this legislation relate to state and local climate lawsuits?

The Polluters Pay Climate Fund Act is not a substitute for or designed to preempt state-level climate superfund laws or lawsuits seeking to hold the fossil fuel industry accountable for damages to communities.

Growing Momentum

For over 60 years, fossil fuel companies have been aware of their industry’s contributions to climate change. Despite this knowledge, these companies took little to no action to mitigate the environmental and human health impacts of their business practices.

It’s time to hold the largest fossil fuel companies responsible for decades of destructive actions. The movement to make polluters pay is gaining significant traction across the nation, with both legislative victories and strong public support.

Vermont became the first state to sign a climate superfund bill into law in May 2024, with New York poised to follow suit.

Recent polling shows strong public support.