Chicago Sues Oil and Gas Companies for Climate Change Impact on City
The city of Chicago has filed a lawsuit against five major oil and gas companies and the American Petroleum Institute, accusing them of misleading the public about the effects of fossil fuel use on climate change. Chicago is following in the footsteps of other government bodies that have taken legal action against these companies for their role in contributing to climate change.
The lawsuit, which was filed in Cook County Circuit Court, claims that BP, Chevron, Shell, ConocoPhillips, Exxon Mobil, and the American Petroleum Institute engaged in a “climate deception campaign” in order to protect their profits. The city is represented by its own attorneys as well as lawyers from a Chicago and San Francisco firm.
Chicago is not seeking a specific sum from the defendants but is demanding reimbursement for the costs incurred from climate change-related events such as infrastructure and property damage. Since 1980, the city has experienced warmer winters, decreased ice coverage on Lake Michigan, heat waves, and more heavy rain events, all of which have caused damage to its infrastructure and housing.
The lawsuit highlights that this damage has been particularly severe in low-income and historically marginalized communities. It also points out that 2023 was the hottest year on record, with predictions of even more extremely hot days in the future. To prepare for these weather events, Chicago plans to invest nearly $200 million in creating new infrastructure and protecting vulnerable areas from the impacts of climate change.
The attorneys argue that the oil and gas companies have been aware for decades that their products contribute to global warming. The lawsuit draws a parallel between the companies’ marketing efforts and those of the tobacco industry in response to research on the health effects of smoking. Additionally, it accuses the American Petroleum Institute of running campaigns to sow doubt about the causes of climate change, ultimately prolonging the use of fossil fuels and exacerbating the impact on Chicagoans.
A case management hearing is scheduled for June 20th, according to court records. Chicago’s legal action against these oil and gas companies highlights the growing momentum in holding them accountable for their role in climate change and seeking compensation for the costs incurred by cities and states.
Analyst comment
Positive news.
As an analyst, this lawsuit could have a significant impact on the market. It sets a precedent for other cities and states to follow in suing oil and gas companies for their contributions to climate change. This could lead to increased legal pressure on the industry, potentially affecting their profits and forcing them to take more responsibility for their actions. Additionally, it highlights the need for cities to invest in climate change mitigation measures, creating opportunities in the infrastructure sector.
