London Daily

Focus on the big picture.
Saturday, Mar 14, 2026

Democrats Seek $500 Billion in Climate Damages From Big Polluting Companies

Democrats Seek $500 Billion in Climate Damages From Big Polluting Companies

Under a draft plan Democrats are circulating, the Treasury Department would tax a handful of the biggest emitters of planet-warming pollution to pay for climate change.
Democrats in Congress want to tax Exxon, Chevron and a handful of other major oil and gas companies, saying the biggest climate polluters should pay for the floods, wildfires and other disasters that scientists have linked to the burning of fossil fuels.

The draft legislation from Senator Chris Van Hollen of Maryland directs the Treasury Department and the Environmental Protection Agency to identify the companies that released the most greenhouse gases into the atmosphere from 2000 to 2019 and assess a fee based on the amounts they emitted.

That could generate an estimated $500 billion over the next decade, according to Mr. Van Hollen. The money would pay for clean energy research and development as well as help communities face the flooding, fires and other disasters that scientists say are growing more destructive and frequent because of a warming planet.

The bill for the largest polluters could be as much as $6 billion annually spread over 10 years, according to a draft of the plan.

“It’s based on a simple but powerful idea that polluters should pay to help clean up the mess they caused, and that those who polluted the most should pay the most,” Mr. Van Hollen said in an interview. “Those who have profited the most should help now pay the damages that they’ve already caused.”

The proposal comes as the Senate prepares to vote on a bipartisan $1 trillion infrastructure package that includes billions of dollars to help communities prepare for and recover from extreme weather driven by climate change. Democrats hope to later pass a separate $3.5 trillion budget package that will include measures to cut carbon dioxide, methane and other greenhouse gases that result from burning fossil fuels and that are helping to drive up global temperatures.

A tax on polluting companies has the support of liberal lawmakers including Senator Bernie Sanders, the Vermont independent, as well as Senators Edward J. Markey and Elizabeth Warren of Massachusetts and Sheldon Whitehouse of Rhode Island, all Democrats.

Mr. Van Hollen says he is optimistic that his legislation will find broad support within his party and be attached to the budget reconciliation package, which Democrats hope to pass without Republican votes. But that would require all Democrats in the narrowly divided Senate to back the measure, including Joe Manchin III of West Virginia, who has routinely argued against anti-fossil fuel legislation.

While several major oil companies, the Chamber of Commerce and the American Petroleum Institute — the country’s largest oil and gas trade group — support a tax on carbon emissions, fossil fuel advocates said on Tuesday that targeting a handful of companies was unfair.

Thomas J. Pyle, president of the Institute for Energy Research, which supports the expanded use of fossil fuels, questioned the legality of Mr. Van Hollen’s tax plan.

“It’s laughable,” he said.

Mr. Pyle said he was stunned by the idea of singling out individual companies to tax, adding “I can’t imagine any court of law that this would stand up in.”

Exxon Mobil and Chevron did not respond to requests for comment.

Frank Macchiarola, senior vice president of the American Petroleum Institute, declined to comment on the proposal but said in a statement that the oil and gas trade group supports “a market-based, economywide carbon price policy” to tackle climate change.

An exhaustive scientific report issued in 2018 by 13 federal agencies concluded that human activities, especially the emissions of greenhouse gases produced by power plants, factories and automobiles that run on fossil fuels, are the dominant cause of the global temperature rise.

The report concluded that extreme weather events made worse by global warming would cause hundreds of billions of dollars a year in damage in the United States alone. In 2020, the nation saw a record 22 disasters that each caused damage of at least $1 billion, according to the National Oceanic and Atmospheric Administration.

Increasingly, climate activists are making the case for redress from those most directly responsible for carbon emissions: the companies that produced them.

“These oil companies and their executives are by far the most responsible parties for the climate crisis,” said Lee Wasserman, director of the Rockefeller Family Fund, a philanthropic group that helped develop the proposed legislation.

Oil companies have accused the Rockefeller Family Fund of bankrolling a climate conspiracy by funding research that has been used in litigation against the fossil fuel industry.

If the Democratic proposal passed into law, the U.S. government would target companies responsible for at least 0.05 percent of the total carbon dioxide and methane gas emissions in the atmosphere from 2000 to 2019. That would apply to 25 to 30 companies. Aides to Mr. Van Hollen said the legislation aims to look back only as far as 2000 because older data is not considered as reliable or uniform.

To determine the biggest emitters, the government could cite a growing body of research developed by Richard Heede, a researcher at the Climate Accountability Institute, a nonprofit advocacy group. In 2014 Mr. Heede quantified the annual production of every major fossil fuel company and converted it into carbon emissions — finding just 90 companies worldwide were responsible for nearly two-thirds of all greenhouse gas emissions since the start of industrialization.

The top 20 companies are responsible for nearly 30 percent of emissions, the study found.

The list includes foreign entities like Saudi Aramco and Gazprom as well as U.S.-based companies including Exxon Mobil, Chevron and ConocoPhillips.

Under the Democrats’ plan, the tax would be applied to U.S. companies and foreign companies with American subsidiaries. Companies also would have the ability to dispute the government’s determination.

“Responsibility to pay would be based on a strict liability standard,” according to a draft of the plan. “There is no requirement to prove negligence or intentional wrongdoing. The proposal does not assign blame for specific damages — it simply ensures that these companies contribute to the solution.”

Amy M. Jaffe, managing director of the Climate Policy Lab at Tufts University’s Fletcher School, said while the proposal may raise money, she was skeptical about whether it would force a reduction in greenhouse gas emissions.

“The best way to change behavior is to regulate it,” she said. “There is no substitution for proper regulation and enforcement to end pollution.”

Richard J. Lazarus, a law professor at Harvard University, said he believes the proposal could withstand legal challenges.

He likened the climate fund to the Comprehensive Environmental Response, Compensation and Liability Act, also known as Superfund, which Congress created in 1980 to force polluting companies to pay to clean up toxic sites.

Mr. Lazarus noted that chemical companies sued to block the program but failed. And, he said, “Any differences between the hazardous waste issues of the 1980s and the climate change issues of our times cut in favor of this legislation.”
Newsletter

Related Articles

0:00
0:00
Close
Middle East War Highlights Strategic Importance of Strong UK–Ireland Cooperation
Weak Growth Signals UK Economy Was Faltering Even Before Middle East Energy Shock
Marks & Spencer Tops UK Fashion Retail Rankings as Most Considered Brand
United States Launches Trade Investigation Into Allies Over Forced Labour Practices
United States Launches Trade Investigation Into Allies Over Forced Labour Practices
Russia Accuses Britain Over Storm Shadow Strike as London Reaffirms Ukraine’s Right to Self-Defence
Russia Accuses Britain Over Storm Shadow Strike as London Reaffirms Ukraine’s Right to Self-Defence
Royal Navy to Acquire Twenty Uncrewed Surface Vessels for Autonomous Warfare Testing
Russia Summons British and French Envoys After Ukrainian Storm Shadow Strike on Strategic Facility
Starmer Confirms Britain Will Maintain Sanctions on Russia Despite U.S. Policy Shift
UK Moves to Refine AI Definition in Investment Security Reform
UK Economy Stalls in January as Growth Unexpectedly Falls to Zero
Asian Energy Security Tested as Strait of Hormuz Disruption Threatens Oil Supplies
Iran Sets Three Conditions for Ending Regional War as Diplomatic Efforts Intensify
Tesla Secures Approval to Supply Electricity Directly to Homes Across Britain
Prince William Delivers Tribute to Australia’s Naval Alliance Amid Renewed Royal Spotlight on the Country
UK Foreign Secretary Travels to Saudi Arabia to Reinforce Support for Regional Allies
Putin’s ‘Hidden Hand’ May Be Assisting Iran in Conflict With Trump, UK Defence Secretary Warns
UK Sets April Deadline for Tech Platforms to Strengthen Online Protections for Children
Elon Musk Moves Into Britain’s Energy Market as Tesla Wins Licence to Supply Power
UK Watchdog Warns Fuel Retailers Against Profiteering Amid Iran War Price Surge
Report Claims Iran Used UK Charity Network to Expand Influence
United States and United Kingdom Establish Joint Standards for Counter-Drone Technology
Iran May Be Laying Naval Mines in Strait of Hormuz, UK Warns Amid Escalating Gulf Tensions
US Deploys Bunker-Buster Bombs to UK Airbase as Iran Conflict Intensifies
British Troops in Iraq Intercept Iranian Drones Targeting Coalition Base
Release of Mandelson Files Raises Tensions as UK Seeks Stable Relations With Donald Trump
UK Documents Reveal Starmer Was Warned About Mandelson’s Epstein Links Before Ambassador Appointment
Nearly Five Hundred UK Mortgage Deals Withdrawn in Two Days as Market Volatility Forces Lenders to Reprice
Three Cargo Ships Hit Near Iran as Attacks Spread to Strategic Strait of Hormuz
Why British Police Repeatedly Declined to Investigate Jeffrey Epstein’s UK Links
UK Parliament Ends Hereditary Seats in House of Lords, Closing Chapter on Centuries of Aristocratic Lawmaking
EU and UK Urge Israel to Act Against Rising West Bank Settler Violence Amid Regional Tensions
US Senator John Kennedy Says Keir Starmer Should Not Be Trusted for Military Advice Amid Iran War Debate
UK High Court Rejects Attempt to Revive Terrorism Charge Against Kneecap Rapper
Revolut Secures Full UK Banking Licence After Multi-Year Regulatory Wait
Kentucky’s Bench Boost Powers Wildcats Past LSU in SEC Tournament Opener
British Couple Die After Being Pulled From Water at Australian Beach During Family Visit
Global Energy Agency Announces Record Release of 400 Million Barrels to Stabilize Oil Markets Amid Hormuz Disruption
British Airways Suspends UK Repatriation Flights as Middle East Travel Disruption Deepens
US Forces Prepare Ordnance at RAF Fairford as Strategic Bombers Deploy for Middle East Operations
Nigel Farage Faces Criticism After Saying Britain Should Stay Out of Iran War
Landmark UK Trial Begins Over Sony’s PlayStation Store Pricing
UK High Court Rejects Bid to Challenge Britain’s Chagos Islands Agreement With Mauritius
Finnish Duo Triumphs in England’s Annual Wife-Carrying Race, Winning a Barrel of Ale
How U.S. and UK National Security Strategies Are Reshaping the Global Business Landscape
Green Party Gains Momentum as Labour Shifts Toward the Political Centre
Royal Navy Destroyer HMS Dragon Sets Sail for Eastern Mediterranean as Regional Tensions Rise
UK Homebuilder Persimmon Warns Iran Conflict Could Dent Property Buyer Confidence
Roman Abramovich Signals Legal Fight if UK Seeks to Seize Chelsea Sale Funds
×