Supreme Court to Hear Major Climate Lawsuit Against Oil Companies

Ruling could determine if climate cases are tried in state or federal court

Published on Feb. 24, 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 ruling could have major implications for the dozens of climate lawsuits filed by state and local governments against oil companies, potentially determining whether they are heard in state or federal courts where the oil companies may have a better chance of winning.

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. However, 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 it will hear the case on Monday, February 24, 2026.
  • The Trump administration recently repealed the endangerment finding, the scientific determination that underpinned federal greenhouse gas regulations.

The players

Exxon Mobil Corp.

An American oil and gas company that is being sued by the city and county of Boulder, Colorado.

Suncor Energy Inc.

A Canadian oil and gas company that is being sued by the city and county of Boulder, Colorado.

City and County of Boulder, Colorado

Local governments that have sued Exxon Mobil and Suncor Energy over climate change-related damages.

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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 the fate of dozens of climate lawsuits against oil companies.

The takeaway

This Supreme Court case could have major implications for the ability of state and local governments to hold oil companies accountable for climate change-related damages through the courts, with the potential to shift these lawsuits from state to federal courts where the oil companies may have a better chance of prevailing.