U.S.: Department of Justice Sues New York and Vermont Over “Superfund” Laws

On May 1, 2025, the U.S. Department of Justice (“DOJ”) filed complaints against New York and Vermont over their respective climate-related “Superfund” laws. In its complaints, the DOJ argues that New York’s Climate Change Superfund Act and Vermont’s Climate Superfund Act, which impose fines on fossil fuel companies to fund state infrastructure projects that help mitigate the effects of climate change, are preempted by federal law, violate the interstate commerce clause and the foreign commerce clause and are unconstitutional extraterritorial regulations.

The suits come after President Donald J. Trump issued an executive order in April directing U.S. Attorney General Pamela Bondi to stop the enforcement of laws and regulations that purport to address climate change or greenhouse gas emissions or involve environmental, social and governance initiatives. The executive order states that the New York and Vermont laws “extort” fossil fuel companies for their purported past contributions to greenhouse gas emissions, increase energy costs and hinder national security.

Separately, on May 1, 2025, a coalition of 24 state attorneys general, led by West Virgina Attorney General J.B. McCuskey, joined an existing lawsuit by the U.S. Chamber of Commerce and the American Petroleum Institute challenging the Vermont law. In February, a coalition of 22 state attorneys general, also led by West Virginia Attorney General McCuskey, and joined by several fossil fuel industry associations, challenged the New York law.

Links:
Justice Department Complaint Against Vermont
Justice Department Complaint Against New York
Executive Order
Complaint in Intervention against Vermont
State Attorneys General’s Complaint Against New York

U.S.: 18 States Sue Trump Administration Over Suspension of Wind Energy Projects

On May 5, 2025, a coalition of 18 state attorneys general, led by New York Attorney General Letitia James, initiated legal action against the Trump administration in response to President Trump’s January 20, 2025 Presidential Memorandum halting all federal permitting and approval of wind-energy initiatives. The lawsuit seeks to enjoin federal agencies from halting the development of wind-energy projects.

The complaint alleges that the Trump administration’s actions are “arbitrary and capricious” because they lack “reasoned explanation” and provide no detailed justification for the “abrupt change in longstanding federal policy supporting the development of wind energy”. The complaint asserts that the freeze in wind-energy projects undermines states’ ability to pursue clean, reliable and diversified energy sources, while contradicting decades of bipartisan backing for renewable energy. The states also claim the actions conflict with the Trump administration’s own calls to boost domestic energy production and threaten economic growth, job creation and efforts to reduce fossil fuel dependence.

Following President Trump’s inauguration day memorandum, federal agencies halted all wind-energy project permitting and approval, including issuing a stop-work order for the Empire Wind project, a wind-power project off New York’s coast that had received necessary federal permits. However, on May 20, the Trump administration lifted the stop-work order for the Empire Wind project. The project is slated to deliver power to roughly 500,000 homes by 2027.

Links:
Complaint
Presidential Memorandum

EU: France and Germany Call for EU to Scrap Corporate Sustainability Due Diligence Directive

On May 19, 2025, French President Emmanual Macron publicly called on the European Commission to scrap the forthcoming Corporate Sustainability Due Diligence Directive (“CSDDD”). His call follows similar remarks made on May 9, 2025 by German Chancellor Friedrich Merz, who declared that Germany will revoke its domestic Supply Chain Act and called on the European Commission to do the same with CSDDD.

CSDDD, which entered into force in July 2024, requires in-scope companies to conduct due diligence to identify, mitigate and prevent harm to the environment and wider society resulting from business operations for which they are deemed responsible, including the activities of certain businesses in their value chains.

CSDDD has been met with significant opposition due to the perceived onerous requirements it imposes, and in February 2025 the European Commission, as part of its Omnibus Simplification Package, proposed sweeping changes to reduce CSDDD’s reporting obligations (see our Debevoise In Depth). The European Commission, through its separate “Stop-the-Clock” Directive, delayed the first phase of CSDDD’s application, from 2027 to 2028, and the deadline for EU member states to transpose CSDDD, from 2026 to 2027. The proposed changes to CSDDD under the Omnibus Simplification Package are going through the EU’s legislative process, with the European Parliament expected to vote on them in October.

Links:
Macron Speech
Merz Speech

Australia: EnergyAustralia Settles Greenwashing Case, Publicly Apologizing for Misleading Statements

On May 19, 2025, EnergyAustralia, an Australian energy major, announced that it settled a case before the Federal Court of Australia brought by Parents for Climate, a climate advocacy organization. The case related to EnergyAustralia’s marketing of a carbon offset product which allegedly amounted to misleading conduct in breach of the Australian Consumer Law.

The product, known to customers as “Go Neutral”, was launched in 2016 and allowed residential customers to offset the emissions generated by their fuel consumption, which energy was sourced from fossil fuels.

EnergyAustralia acknowledged that “carbon offsetting is not the most effective way to assist customers to reduce their emissions” and apologized to customers who felt that the marketing of “Go Neutral products was unclear.” EnergyAustralia has committed to focusing its future decarbonization efforts on direct emissions reductions rather than offsets.

Link:
Statement