Supreme Court to Hear Major Climate Lawsuit Against Oil Companies

Ruling could determine whether local lawsuits over climate change impacts belong in state or federal court

Published on Feb. 23, 2026

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The Supreme Court announced it will hear a significant climate lawsuit in which oil companies are seeking to avoid being tried in state court. The fate of several dozen climate lawsuits brought against oil companies by state and local governments could hinge on the decision, which could determine whether the cases should be tried in state or federal court.

Why it matters

The Supreme Court's decision could have major implications for the dozens of climate lawsuits filed by state and local governments against oil companies. If the cases are moved to federal court, it would be a major win for the oil industry, which has argued that national regulations should supersede state laws. However, the recent repeal of the federal government's endangerment finding could complicate the oil companies' argument for federal jurisdiction.

The details

Exxon Mobil Corp. and Suncor Energy Inc., which have been sued by the city and county of Boulder, Colorado, are attempting to move the suit to federal court. Oil companies have claimed that federal rules around greenhouse gas emissions should preempt efforts to sue them under state laws. But the roughly three dozen state and local governments that have sued oil companies argue the cases belong in state court, citing state consumer protection and fraud laws.

  • The Supreme Court announced the case on Monday, February 23, 2026.

The players

Exxon Mobil Corp.

An American oil and gas company that is one of the defendants in the climate lawsuit brought by the city and county of Boulder, Colorado.

Suncor Energy Inc.

A Canadian oil and gas company that is one of the defendants in the climate lawsuit brought by the city and county of Boulder, Colorado.

Boulder, Colorado

The city and county that have filed a climate lawsuit against Exxon Mobil and Suncor Energy.

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What they’re saying

“Should EPA remove its regulation of [greenhouse gases], it increases the likelihood that environmental non-governmental organizations, advocacy groups, citizen groups, and other parties will seek to bring new tort suits and other litigation to test the bounds of continued [Clean Air Act] displacement of federal common law.”

— Edison Electric Institute, Group representing investor-owned electric utilities (Letter to U.S. Environmental Protection Agency)

What’s next

The Supreme Court will hear arguments in the case and issue a ruling that could determine whether the climate lawsuits against oil companies proceed in state or federal court.

The takeaway

The Supreme Court's decision in this case could have far-reaching implications for the dozens of climate change lawsuits filed by state and local governments against major oil companies. The outcome could significantly impact whether these cases are heard in state courts, where the governments believe they have stronger legal standing, or in federal courts, where the oil industry may have an advantage.