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US Supreme Court to kick off term with bid by Big Oil to toss climate suits - Finance news and analysis from Global Banking & Finance Review
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US Supreme Court to kick off term with bid by Big Oil to toss climate suits

Published by Global Banking & Finance Review

Posted on October 4, 2026

3 min read

· Last updated: October 4, 2026

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Supreme Court Begins Term Reviewing Big Oil's Push to Dismiss Climate Lawsuits

Supreme Court Considers Major Climate Change Case Involving Oil Companies

By John Kruzel and Andrew Chung

WASHINGTON, Oct 4 (Reuters) - The US Supreme Court begins its new nine-month term on Monday with arguments in a major case involving a bid by oil companies ExxonMobil and Suncor Energy to scuttle a lawsuit by officials in Boulder, Colorado, seeking monetary damages for harms caused by climate change.

Key Cases and Court Dynamics

It is the first of several important cases already teed up for the term, with disputes involving issues such as President Donald Trump's immigration policies and state-level bans on assault-style rifles to be heard in the coming months. The court's 6-3 conservative majority has moved US law dramatically rightward in recent years.

The top US judicial body, as is its custom, opens its term on the first Monday in October.

Background of the Boulder Lawsuit

US-based Exxon and Canada-based Suncor appealed after the Colorado Supreme Court let Boulder's lawsuit accusing them of state law violations proceed. The Trump administration has backed Exxon and Suncor, arguing that federal law precludes Boulder's claims.

Allegations Against Oil Companies

Boulder's city and county governments have accused the two companies of helping drive climate change and misleading the public about the risks of fossil fuels. Boulder aims to hold the companies liable for past and future costs associated with climate change such as infrastructure repairs, environmental damage, emergency management and harms to public health.

Impact of Fossil Fuels on Climate

The burning of fossil fuels releases greenhouse gases including carbon dioxide into the atmosphere, trapping heat and raising average global temperatures over time.

Wider Implications for Climate Litigation

Nearly 60 state and local governments have brought similar suits seeking billions of dollars from fossil fuel companies, with more continuing to be filed, Exxon and Suncor told the justices. A ruling by the Supreme Court in favor of the companies could lead to many of those cases being dismissed.

Energy Sector's Legal Strategy

Monday's arguments mark the latest example of energy-sector companies asking the justices to block climate-related liability or limit federal environmental regulation.

Arguments from Oil Companies and Supporters

Backers of the oil companies argue that if Boulder's most far-reaching claims are allowed to proceed, it could give states sweeping power over conduct occurring far outside their borders.

Energy Companies' Record Before the Supreme Court

Energy companies and trade groups, along with states allied with them, have built a largely winning record before the justices over the past two decades in cases involving climate liability and the reach of federal environmental regulation.

Legal Arguments and Federal Law

Exxon and Suncor argue, among other things, that Boulder's claims intrude on an area governed by the Clean Air Act. 

Other Notable Aspects of the Case

Justice Samuel Alito has recused himself from participating in the case. Alito owns stock in several oil and gas companies but not Exxon or Suncor, according to his financial disclosure forms.

Timeline for Supreme Court Decision

The Supreme Court's decision is expected by the end of June.

(Reporting by John Kruzel and Andrew Chung; Editing by Will Dunham)

Key Takeaways

  • The Supreme Court’s new term begins Monday, October 5, 2026 — the first Monday in October by law (supremecourt.gov).
  • Boulder’s suit—filed in 2018 and upheld by the Colorado Supreme Court in May 2025—alleges Exxon and Suncor contributed to climate harms and misled the public; the high court will assess whether federal law (e.g., the Clean Air Act) preempts such state claims (law.justia.com).
  • Justice Alito has recused himself from the case over oil stock holdings (apnews.com).

References

Frequently Asked Questions

What case is the US Supreme Court hearing at the start of its term?
The Supreme Court is hearing arguments on whether to dismiss a lawsuit by Boulder, Colorado, against ExxonMobil and Suncor Energy for climate change damages.
Who are the companies involved in the Colorado climate lawsuit?
ExxonMobil and Suncor Energy are the oil companies involved in the lawsuit filed by Boulder, Colorado.
What are Boulder's allegations against ExxonMobil and Suncor?
Boulder accuses ExxonMobil and Suncor of contributing to climate change, misleading the public about fossil fuel risks, and seeks monetary damages.
Why is the outcome of this Supreme Court case significant?
A ruling in favor of ExxonMobil and Suncor could lead to similar climate lawsuits being dismissed nationwide, impacting state and local litigation.
When is the Supreme Court's decision on this case expected?
The decision in the ExxonMobil and Suncor climate case is expected by the end of June.

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