Op-Ed: Climate litigation isn’t the solution to NJ’s environmental challenges

Lawsuits will only increase expenses and create obstacles for a clean-energy future

Michael Melham | December 15, 2023 | Opinion, Energy & Environment

Michael Melham

While there is a desire among many in Trenton to transition exclusively to solar and wind energy to meet our state’s growing energy requirements, the reality is that we have not reached that point. And climate lawsuits like those filed in New Jersey are pushing the green energy goal even further away.

New Jersey’s public officials need to come together to advance practical climate solutions that avoid punishing a handful of companies that serve New Jersey for widespread global emissions.

There have been dozens of climate lawsuits filed across the nation since 2017, with two filed right here in New Jersey. Hoboken and the state of New Jersey filed lawsuits two years apart against energy producers and industry groups, both alleging “public and private nuisance, trespass, negligence, and violation of the New Jersey Consumer Fraud Act.” Essentially, Hoboken and the state claim these companies intentionally misled the public about climate change.

I believe the climate has become a political weapon, used to punish companies and other entities that do not walk in lockstep with whichever administration is running government at the moment. Instead, public officials from both sides of the aisle can protect the environment while incentivizing the private sector to invest in clean energy in New Jersey and all across the nation.

It’s worth noting that those of us in Belleville, and New Jersey more broadly, still largely rely on fossil fuels in our everyday lives. Today, according to Energy Information Administration data, 72.8% of New Jerseyans use natural gas to heat their home compared to the national average of 46.5%.

The fact underscores that not only do residents in our state rely heavily on the fuel products by energy companies that are being sued, but we disproportionately rely on them compared to other states. In addition, hundreds of thousands of workers in our state rely on the energy industry for their well-paying jobs. In suing these companies, New Jersey is cutting off its nose to spite its face.

Progress made

Moreover, many of the energy producers named in these lawsuits have actually made great progress in the green technology space. They have witnessed the nation’s desire to transition and have worked to lead the way. In 2019, the U.S. led the world in reducing energy-related carbon dioxide emissions, thanks to these companies driving the transition from coal to natural gas for power generation.

McKinsey studies found that energy producers in particular have a significant role to play, both in energy delivery today and in enabling the energy transition for the future. This is thanks to their capital strength, market intelligence, innovation, technology and supply chain that allows them to scale energy projects better than most.

Lawsuits won’t make these products go away immediately but will raise energy bills and create obstacles for the progress we are making. Should these companies have to pay out on these multimillion-dollar suits across the nation, they won’t just eat the cost but will rather shift the expense onto consumers. New Jerseyans on average have an electricity rate of 18.02 ¢/kWh, which is 10% higher than the national average.

Because New Jersey’s electricity use comes from natural gas more than any other energy source, these lawsuits have the potential to do more harm than good.

Our state’s goal of obtaining 7,500 megawatts of wind power capacity by 2035 and 11,000 megawatts by 2040 is admirable, but at what cost and to whom? With offshore wind projects in the state being canceled, paired with these two duplicative lawsuits in the state filed against energy producers, it creates a bleak outlook on the future of energy in our state.

We need traditional energy resources right now, as we move toward and transition to renewable energy. After all, moving too rapidly will create grid unreliability, blackouts and waste billions of dollars. Rather than vilifying our current energy producers in the courts, we should all come together to innovate and create the best energy future for New Jersey and beyond.

A realistic pathway to greener solutions includes an all-of-the-above energy framework by incorporating the innovative ingenuity of traditional energy producers and renewable energy entrepreneurs. The fix will come from partnership, public support and private innovation.

States and municipalities across the United States cannot sue energy producers and expect climate action success. We need to take tangible and practical steps together toward a greener, cleaner environment.