NY Climate Change Superfund Act

As climate-related disasters become more frequent and severe, governments are looking for ways to fund the infrastructure and public health investments needed to protect communities. Climate change superfund laws — recently enacted in New York and Vermont — ensure that fossil fuel companies that have contributed significantly to greenhouse gas (GHG) emissions take financial responsibility for the costs of climate adaptation.

NY Climate Change Superfund Act | One Click LCA

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New York’s Climate Change Superfund Act, signed into law by Governor Kathy Hochul in December 2024, is designed to generate $75 billion over 25 years by requiring fossil fuel producers responsible for more than 1 billion metric tons of GHG emissions since 2000 to pay into a state-managed adaptation fund.

Funding climate adaptation without burdening taxpayers

“Repairing from and preparing for extreme weather caused by climate change will cost more than half a trillion dollars state-wide by 2050. That’s over $65,000 per household."

-New York State Senator Liz Krueger

New York alone is projected to face over $500 billion in climate adaptation costs by 2050, equivalent to more than $65,000 per household. Without policies that hold major polluters accountable, the cost of protecting infrastructure, communities, and public health falls largely on taxpayers.

The Climate Change Superfund Act ensures that those who profited from fossil fuel extraction and production contribute to repairing the damage caused by extreme weather events. According to New York State Senator Liz Krueger, the lead sponsor of the legislation, “Repairing from and preparing for extreme weather caused by climate change will cost more than half a trillion dollars state-wide by 2050. That’s over $65,000 per household."

Investing in infrastructure, resilience, and public health

The funds collected under New York’s law, the Climate Change Superfund Act, will be used to finance climate adaptation projects, including:

Upgrading roads, bridges, and stormwater systems to withstand extreme weather.
Restoring wetlands and coastal areas to mitigate flooding.
Improving energy efficiency in public and private buildings.
Supporting public health initiatives that address climate-driven illnesses.

At least 35%–40% of the funds must directly benefit disadvantaged communities, ensuring that climate resilience efforts prioritize those most affected by climate change.

A shift toward lower-carbon materials and construction

While the Climate Change Superfund Act targets fossil fuel producers, it highlights a broader shift in how industries — including construction and manufacturing — must approach decarbonization. The law’s funding priorities, such as energy-efficient cooling systems in buildings, demonstrate the increasing importance of low-carbon materials and sustainable building practices in reducing climate risk.

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Additionally, the law includes domestic material requirements for publicly funded projects, stating that iron, steel, and aluminum products must be manufactured in the United States. This provision could encourage innovation in low-carbon steel and cement production, aligning with the industry-wide push toward environmental product declarations (EPDs) and low-carbon material choices in construction.

A model for other states and industries

With Vermont and New York leading the way, other states — including California, Maryland, Massachusetts, and New Jersey — are considering similar policies. These laws reinforce the idea that companies must account for the environmental costs of their operations and that investing in decarbonization today can reduce financial liabilities in the future.

By prioritizing climate-resilient infrastructure and low-carbon building practices, businesses can reduce both their exposure to regulatory costs and their long-term risk from climate-related disruptions. As more governments adopt climate accountability measures, the role of life-cycle assessment (LCA), sustainable materials, and emissions reduction strategies will only grow more central to business strategy.

New York’s Climate Change Superfund Act is a step toward ensuring that the industries most responsible for GHG emissions contribute to climate resilience. It also signals to businesses across sectors, including construction and manufacturing, that reducing emissions is no longer just an environmental priority — it is an economic necessity and a competitive edge.