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Manila Times Business

What's next after judge strikes down New York's landmark climate fund law

WASHINGTON, United States — A federal judge has sided with Republican states and fossil fuel industry groups to strike down a landmark New York law that would have made polluters pay for the damages caused by global warming. Climate campaigners are urging New York's attorney general to appeal, while experts are split over what the ruling means for other states -- including Vermont, which has a similar law -- and others where such measures have been proposed. Here's what to know. - What the

Context & Analysis

The New York decision matters less for the court result than for the signal it sends: climate costs may be fought in courts rather than legislatures. For years, US states have tried to fill gaps left by limited federal climate policy through building codes, disclosure rules, procurement standards, and liability schemes. The measure at issue sat at the edge of what state governments can impose on private companies. By striking it down, the judge has raised doubts about how far other states can go when trying to create new climate liability regimes without a uniform national framework.

For Philippine businesses, the lesson is not that one US law was blocked, but that climate risk is becoming a legal and financial issue across borders. Companies exporting to the United States, sourcing from global suppliers, or raising capital abroad may face tighter expectations on emissions, resilience, and supply-chain transparency. Lenders and insurers are already more cautious about typhoon-exposed operations, water stress, energy costs, and asset stranding in carbon-intensive sectors. Even without a direct US polluter-pays rule, Philippine firms can be affected through customer requirements, bank covenants, insurance pricing, and investor due diligence. The SEC’s emphasis on corporate governance and disclosure, the BSP’s focus on financial stability, and local regulators’ interest in energy security all make climate risk easier to ignore at a company’s own peril than it was a few years ago.

The next steps to watch are whether New York appeals, how the ruling is interpreted for similar state measures, and whether industry groups use it as a template against other climate funds. If US state action slows, pressure may shift toward federal trade rules, international standards, or private-sector supply-chain demands. For Philippine owners and investors, that means building climate resilience into business plans: mapping physical risks, understanding customer expectations, improving energy efficiency, and preparing clearer disclosures before regulators or counterparties make them mandatory.

Analysis by IJE Software — original commentary on the story above.

This is an excerpt. Read the full article at the original source:

Source: manilatimes.net

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