Supreme Court to Hear Big Oil Climate Liability Case

Trump administration backs oil companies in fight against state lawsuits over climate change damages

Published on Feb. 23, 2026

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The Supreme Court has agreed to hear a case from Boulder, Colorado, that alleges major oil and gas companies, including Suncor Energy and ExxonMobil, deceived the public about the role of fossil fuels in contributing to climate change. The case is one of multiple lawsuits filed by governments seeking billions in damages to help pay for rebuilding after climate change-related disasters. The oil companies argue emissions are a national issue that should be heard in federal court, where similar suits have been dismissed, while the Trump administration has supported the companies in urging the Supreme Court to reverse the Colorado court's decision allowing the case to proceed in state court.

Why it matters

This Supreme Court case could have major implications for the wave of climate liability lawsuits being filed across the country by state and local governments seeking to recoup costs associated with climate change impacts. A ruling in favor of the oil companies could make it much harder for these types of lawsuits to succeed, while a ruling against the industry could open the door to more legal actions and potentially force fossil fuel companies to pay billions in damages.

The details

The Supreme Court agreed to hear the case from Boulder County, Colorado, which is alleging that Suncor Energy and ExxonMobil deceived the public about the role of fossil fuels in contributing to climate change. The oil companies argue that emissions are a national issue that should be heard in federal court, where similar suits have been dismissed. However, the Colorado Supreme Court previously allowed the Boulder case to proceed in state court. The Trump administration has weighed in to support the oil companies, arguing that allowing the case to move forward would mean 'every locality in the country could sue essentially anyone in the world for contributing to global climate change.'

  • The Supreme Court said it will hear the case in the fall of 2026.

The players

Suncor Energy

An oil and gas company that is one of the defendants in the climate liability lawsuit filed by Boulder, Colorado.

ExxonMobil

An oil and gas company that is one of the defendants in the climate liability lawsuit filed by Boulder, Colorado.

Boulder, Colorado

The city that filed a lawsuit alleging major oil companies deceived the public about the role of fossil fuels in contributing to climate change.

Donald Trump

The former U.S. president whose administration has weighed in to support the oil companies and urge the Supreme Court to reverse the Colorado court's decision allowing the case to proceed in state court.

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What they’re saying

“Climate policy shouldn't be set through fragmented state‑court actions.”

— ExxonMobil (Fortune)

“There is no constitutional bar to states addressing in-state harms caused by out-of-state conduct, be it the negligent design of an automobile or sale of asbestos.”

— Attorneys for Boulder (Fortune)

“Our case is, fundamentally, about fairness. Boulder is already experiencing the effects of a rapidly warming climate, and the financial burden of adaptation should not fall solely on local taxpayers.”

— Jonathan Koehn, Climate initiatives director, Boulder (Fortune)

What’s next

The Supreme Court has asked both sides to present arguments on whether the case is truly ready to be heard by the justices. The case is expected to be heard in the fall of 2026.

The takeaway

This Supreme Court case could have far-reaching implications for the growing number of climate liability lawsuits being filed by state and local governments against major oil and gas companies. A ruling in favor of the industry could make it much harder for these types of lawsuits to succeed, while a ruling against the companies could open the door to more legal actions and potentially force them to pay billions in damages.