On April 1, the U.S. Court of Appeals for the Second Circuit affirmed the dismissal of a lawsuit attempting to hold multinational oil companies liable for the harmful effects of global warming. In City of New York v. Chevron, No. 18-2188 (2d Cir. 2021), New York City brought state law tort claims against domestic and foreign companies seeking to recover the billions of dollars expended by the city to build climate resiliency into its infrastructure and programs. The Second Circuit held that federal law displaced the city’s claims against the domestic oil companies, and the claims against foreign oil companies were foreclosed by the serious foreign policy consequences that are within the jurisdiction of the political branches of government.

Although this decision is a serious setback for efforts to limit greenhouse gas emissions, options remain. Tort suits invoking the law of states where the emitting facilities are located may be feasible. And the Biden administration’s focus on climate suggests that stringent regulatory emission limits or statutory changes imposing an emissions tax or other mechanism to internalize the harms emitters cause may be forthcoming.