The US Supreme Court is set to begin its new nine-month term with a major case involving ExxonMobil and Suncor Energy, which are seeking to stop a climate-change lawsuit brought by officials in Boulder, Colorado.
The justices are scheduled to hear arguments on Monday, October 5, in a case that could have wider implications for dozens of similar lawsuits filed by US states, cities and counties against fossil-fuel companies.
Boulder officials accuse ExxonMobil and Suncor of contributing to climate change and misleading the public about the risks associated with fossil fuels. The local governments are seeking financial compensation for costs they say are linked to climate-related damage, including infrastructure repairs, environmental impacts and emergency management.
The oil companies deny wrongdoing and argue that Boulder's claims are blocked by federal law. They contend that climate policy involving interstate and international greenhouse-gas emissions should be handled under federal authority rather than through state-law lawsuits.
The companies also argue that the Clean Air Act and other federal principles prevent Boulder from pursuing its claims in state court. The Colorado Supreme Court previously allowed the lawsuit to proceed, prompting Exxon and Suncor to appeal to the nation's highest court.
The case is being closely watched because nearly 60 state and local governments have brought similar lawsuits seeking financial damages from fossil-fuel companies, according to Exxon and Suncor. A ruling in favour of the companies could make it more difficult for many of those cases to continue.
The Trump administration has also supported Exxon and Suncor, arguing that federal law prevents Boulder from pursuing its claims. Environmental groups and local governments, meanwhile, say communities should be able to seek compensation for climate-related costs.
Justice Samuel Alito will not participate in the case. Reuters reported that Alito owns shares in several oil and gas companies, although he does not own stock in ExxonMobil or Suncor.
The Supreme Court's decision is expected by the end of June 2027. The ruling could help determine the future of a growing number of climate-liability lawsuits across the United States and clarify how far state and local governments can go in seeking damages from major fossil-fuel companies.