Supreme Court to Hear High-Stakes Climate Change Lawsuit Against Energy Companies

The case could have major financial implications for the energy industry.

Published on Feb. 23, 2026

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The Supreme Court agreed to consider whether energy companies can be sued in state court over the alleged impacts of climate change. The case was originally filed by Boulder County and the City of Boulder in 2018, claiming the companies' sale of fossil fuels contributed to global climate change that caused harm to Colorado. The energy companies argue that federal law prevents local governments from using state law to seek damages for climate change, and that one city should not be able to 'make energy policy for the entire country'.

Why it matters

This case could have major financial implications for the energy industry, with the potential for billions of dollars in damages if the local governments prevail. It also raises broader questions about the role of the courts versus elected policymakers in addressing climate change issues.

The details

The Supreme Court directed the parties to present arguments on whether the court has jurisdiction to hear the case. The Trump Department of Justice previously backed the energy companies' petition, arguing that 'every locality in the country could sue essentially anyone in the world for contributing to global climate change' under Colorado's theory. The case is one of nearly three dozen climate lawsuits nationwide, with courts across the country responding in divergent ways.

  • The Supreme Court agreed to consider the case on February 23, 2026.
  • The Colorado Supreme Court allowed the case to move forward in 2024.

The players

Boulder County

A county in Colorado that filed the original lawsuit against the energy companies in 2018.

City of Boulder

A city in Colorado that joined Boulder County in filing the lawsuit against the energy companies in 2018.

Suncor Energy

An energy company that is one of the defendants in the lawsuit.

Exxon Mobil

An energy company that is one of the defendants in the lawsuit.

Trump Department of Justice

The Department of Justice under the Trump administration, which backed the energy companies' petition in September 2025.

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What they’re saying

“Energy companies that produce and sell fossil fuels are facing numerous lawsuits in state courts across the Nation seeking billions of dollars in damages for injuries allegedly caused by the contribution of greenhouse-gas emissions to global climate change.”

— Suncor Energy and Exxon Mobil (Supreme Court petition)

“The Supreme Court's decision to review Boulder's climate lawsuit is a decisive step toward resolving conflicting rulings nationwide and reaffirming that climate policy belongs with elected policymakers – not the courts.”

— Phil Goldberg, Manufacturers' Accountability Project Special Counsel (Statement)

What’s next

The Supreme Court will hear arguments on whether it has jurisdiction to hear the case.

The takeaway

This high-stakes case could have major financial implications for the energy industry and raises broader questions about the role of the courts versus elected policymakers in addressing climate change issues.