The oil and gas industry is grappling with a growing number of lawsuits claiming the sector misled the public about its role in climate change. States like California, Colorado, and New Jersey are suing for billions in damages linked to wildfires, sea-level rise, and severe weather. This legal wave reflects an increasing use of courts to drive climate action globally.

Hawaii's Supreme Court allowed a lawsuit filed by Honolulu against major companies, including Sunoco, Shell, Chevron, ExxonMobil, and BP, to proceed. These corporations, many based in Texas, argue that emissions are a national issue requiring federal jurisdiction, where they have historically succeeded in dismissing such cases. Their Supreme Court appeal was declined, leaving the matter in state court.

The companies’ legal team emphasized the case's high stakes, warning that these lawsuits could undermine a critical national industry. The American Enterprise Institute echoed these concerns, suggesting the cases might empower activists to act as de facto energy regulators.

The Biden administration supported the lawsuit remaining in state court, though it noted that companies might ultimately prevail. In contrast, the incoming Trump administration is expected to adopt policies favoring the fossil fuel industry and opposing stringent environmental laws.

Honolulu claims the companies engaged in deceptive marketing under state laws, a matter the city argues falls within state jurisdiction. Meanwhile, the Supreme Court's track record on environmental regulations under its conservative majority includes limiting the EPA’s authority in cases like the regulation of power plant emissions.

Justice Samuel Alito recused himself from the appeal, likely due to his financial ties to the companies involved. This marks another high-profile climate case amidst increasing scrutiny of corporate responsibility for environmental impacts.