A groundbreaking bill introduced this week by U.S. Sen. Chris Van Hollen (D-Md.) and Rep. Jerry Nadler (D-N.Y.) aims to hold fossil fuel companies accountable for their role in the climate crisis. The Polluters Pay Climate Fund Act would require major fossil fuel companies to pay into a damages fund, modeled after the Superfund, to help mitigate the harm caused by their contributions to global warming. This fund, estimated to raise $1 trillion, would specifically target the companies responsible for the most pollution and would allocate significant resources to environmental justice initiatives.
“We all agree on a simple but powerful principle—that polluters should pay to clean up the mess that they have caused, and those that have polluted the most should pay the most,” Van Hollen said at a press conference announcing the bill. The legislation, which has been backed by environmental groups and progressive lawmakers, marks a major step in the ongoing effort to address the climate crisis by placing financial responsibility on those who have contributed most to the problem.
The bill focuses on the biggest players in the fossil fuel industry—companies that have emitted at least 1 billion tons of carbon dioxide between 2000 and 2022. These “heaviest hitters” include oil, gas, and coal companies, and the levies they would face under the bill are directly proportional to their carbon emissions. The U.S. Treasury and the Environmental Protection Agency (EPA) would be responsible for calculating these levies, ensuring that the most significant contributors to climate change bear the largest financial burden.
“We’re thrilled to be supporting the first-ever federal bill that would make polluters pay for climate damages,” said Jamie Henn, director of Fossil Free Media. The bill aims not only to address climate damage but also to deliver long-overdue justice to communities that have suffered the worst consequences of fossil fuel extraction and pollution.
At least 40% of the $1 trillion fund would go toward environmental justice efforts, a significant proportion aimed at helping frontline communities. These are often low-income communities and communities of color, disproportionately affected by environmental degradation caused by fossil fuel industries. Residents in these areas face elevated health risks, including respiratory diseases and cancer, due to proximity to coal plants, oil refineries, and other high-pollution sites.
Sara Chieffo, vice president of the League of Conservation Voters, expressed the importance of this aspect of the bill: “The fossil fuel industry has known about climate change for decades. It’s time they face the consequences of their deception and are held responsible for their actions that are destroying both lives and a livable, safe climate.”
The bill seeks to correct this long-standing injustice by directing significant financial resources to improve health outcomes, housing, and infrastructure in communities that have historically been neglected by both the fossil fuel industry and federal policy.
The Polluters Pay Climate Fund Act has garnered support from progressive leaders in Congress, including Sen. Bernie Sanders (I-Vt.) and Rep. Alexandria Ocasio-Cortez (D-N.Y.). Van Hollen emphasized that the bill would take the burden off taxpayers and place it squarely on the shoulders of those responsible for climate pollution.
“This is a big, big step forward,” Van Hollen said, noting that similar state-level initiatives, like the one passed in Vermont earlier this year, have demonstrated public support for making polluters pay. By elevating this concept to the federal level, the bill could set a national precedent for corporate accountability in the fight against climate change.
Rep. Nadler added, “The American people shouldn’t have to foot the bill for the destruction caused by Big Oil. It’s time these corporations paid their fair share.”
The introduction of this bill comes as more states and countries around the world are moving toward holding fossil fuel companies accountable for their role in exacerbating climate change. Many of these companies have known for decades that their activities were accelerating global warming, yet they continued to prioritize profit over environmental and public health.
Phil Radford, chief strategy officer of the Sierra Club, echoed the growing sentiment that fossil fuel companies must be held accountable. “For way too long, these companies have poisoned communities, spilled oil, polluted our air, caused all sorts of health problems, and gotten away with it. Today is an incredible moment where we are saying: No more.”
The bill’s backers argue that without addressing the root cause of the climate crisis—the corporations responsible for the bulk of global emissions—any efforts to mitigate climate change will fall short.
While the bill has strong backing from environmental organizations and progressive lawmakers, its passage is far from guaranteed. The fossil fuel industry, long a powerful force in American politics, is expected to lobby aggressively against the legislation. Many Republicans and centrist Democrats have historically opposed measures that would increase financial pressure on oil, gas, and coal companies, citing concerns about job losses and economic impact.
However, public opinion is increasingly in favor of holding corporations accountable for their role in the climate crisis. As the devastating effects of climate change become more apparent—through extreme weather events, wildfires, and rising sea levels—calls for corporate accountability have grown louder.
Van Hollen and his co-sponsors are hopeful that the momentum for climate action will propel the bill through Congress, and they are urging constituents to contact their representatives in support of the legislation.
“We have a moral obligation to act,” Van Hollen said. “Those that have polluted the most should pay the most.”
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