U.S. President Donald Trump has issued a new executive order on April 8, 2025 aimed at stopping states from enforcing climate-related laws that restrict fossil fuel use. The order is called "Protecting American Energy from State Overreach" and claims that certain state policies go too far and conflict with national interests.

What the Order Does:

i. The U.S. Attorney General is instructed to identify state and local laws or lawsuits that regulate energy use, carbon emissions, or apply climate-related standards like ESG (Environmental, Social, and Governance).

ii. If any of these laws are seen as unconstitutional or conflicting with federal law, the Department of Justice is directed to challenge them in court.

iii.  Within 60 days, the Attorney General must report back to the President with findings and suggest next steps.

Which State Laws Are Being Targeted:

The order focuses on several high-profile state initiatives:

1. New York’s Climate Change Superfund Act

(Seeks damages from oil companies for past pollution)

Introduced by Governor Kathy Hochul, this proposed law would require fossil fuel companies to pay for climate adaptation infrastructure in New York, based on their contribution to greenhouse gas emissions. It’s estimated to raise $75 billion by 2050, or about $3 billion per year. A coalition of 22 state Attorneys General has already sued to block the Act, arguing it unfairly penalizes companies for emissions outside New York’s borders.

2. Vermont’s similar legislation

(Holds companies responsible for global emissions)

Described in the order as “extorting” fossil fuel companies in the same manner as New York’s Climate Change Superfund Act.

3. California’s Cap-and-Trade Program

(Limits carbon emissions and requires companies to buy credits if they exceed those limits)

This policy sets a declining limit on emissions and requires companies to buy allowances if they exceed those caps. The executive order argues this punishes carbon use and restricts economic activity. 

Why This Matters:

This move is a significant federal pushback against state-level environmental action. It:

i. Reinforces Trump’s support for fossil fuel production.

ii. Could weaken state climate policies and lawsuits.

iii. Raise legal questions about states’ rights versus federal authority.

Next Steps:

i. The Attorney General will evaluate the legal standing of state laws and lawsuits.

ii. Legal battles are expected between the federal government and states.

iii. States might fight back with new laws or legal challenges of their own.

This is a major development in U.S. climate policy, potentially shifting power away from states and toward the federal government in deciding how to manage environmental and energy issues.