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Trump Administration Sues Michigan to Block Climate Lawsuits Against Oil Companies

Word on the StreetThursday, May 1, 2025 11:17 am ET
1min read

The Trump administration has filed a lawsuit against the state of Michigan, aiming to prevent the state from pursuing legal action against major oil companies for their role in climate change. The lawsuit alleges that Michigan's planned litigation constitutes an "unusual extraterritorial effect," which would disrupt federal regulation of greenhouse gas emissions and undermine the government's foreign policy objectives.

Michigan has not yet filed the lawsuit, but the state's Democratic Attorney General, Dana Nessel, announced in October 2023 that Michigan was seeking legal advice to represent the state in climate change-related litigation. This move follows a trend of Democratic-led states filing similar lawsuits against companies such as ExxonMobil, chevron, conocophillips, shell, and BP, accusing them of deceiving the public about the role of fossil fuels in climate change.

The Trump administration's lawsuit comes as part of a broader effort to curb what the president has described as "frivolous lawsuits" from environmental extremists. This preemptive legal action is in line with Trump's campaign promises to halt such litigation. The lawsuit references an executive order signed by Trump on his first day in office, declaring a national energy emergency to expedite energy projects, roll back environmental protections, and withdraw the United States from international climate agreements.

The Department of Justice argues that state restrictions on energy production have led to higher energy costs for Americans and weakened the nation's ability to defend against foreign adversaries. The lawsuit claims that Michigan's planned litigation against the fossil fuel industry interferes with federal efforts to promote domestic energy supply, stating that "the Constitution and laws of the United States cannot tolerate such interference."

Similar lawsuits by state and local governments accuse energy companies of concealing the fact that burning fossil fuels causes climate change, resulting in public nuisance or violations of state laws. These companies have denied any wrongdoing. Many of these cases are still in their early stages, with ongoing disputes over whether they should be heard in state or federal courts.

In March 2024, the U.S. Supreme Court rejected a request from 19 Republican-led states, led by Alabama, to block five Democratic-led states from pursuing such lawsuits. The states' arguments were similar to those presented by the Department of Justice in its lawsuit against Michigan. This legal battle underscores the deepening divide between states over climate change policy and the role of the federal government in regulating energy production and environmental protection.

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