The Eighth Circuit Court of Appeals upheld a district court judgment that affirmed a bankruptcy court’s determination that California municipalities’ climate change-based common law and statutory nuisance claims against the coal company Peabody Energy Corporation (Peabody) were discharged during Peabody’s bankruptcy proceeding. The Eighth Circuit found that the district court did not abuse its discretion in finding that the bankruptcy plan’s exemptions for governmental claims brought “under any applicable Environmental Law” or “under any … applicable police or regulatory law.” The Eighth Circuit also rejected the municipalities’ argument that their public-nuisance claim asserted on behalf of the people of California was not a claim under bankruptcy law because it only entitled them to equitable relief. In addition, the Eighth Circuit agreed with the bankruptcy court all of the municipalities’ claims were directed at Peabody’s pre-bankruptcy conduct and therefore did not survive the bankruptcy.

Action by California counties and cities seeking damages and other relief from fossil fuel companies for sea level rise. 

County of San Mateo v. Peabody Energy Corp. (In re: Peabody Energy Corp.)

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Eighth Circuit Affirmed Bankruptcy Discharge of Climate Claims Against Coal Company

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United States of America

Missouri

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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

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A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

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Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

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Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

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Oil is a combustible liquid fossil fuel composed mainly of hydrocarbons, occurring as crude oil and refined into petroleum products such as petrol, diesel and kerosene.

Coal is a combustible sedimentary rock formed from carbonised plant matter, rich in carbon and hydrocarbons, and occurring in several main types including hard coal and brown coal.

This sector involves managing waste treatment, sanitation, pollution control and environmental cleanup.

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Any substance with chemical properties that can cause physical harm to people or damage the environment, including ammonia, carbon monoxide, phosphine, chlorine, arsenic, cadmium, mercury, pesticides, dioxins, microplastics, benzene, asbestos, aflatoxins, fluoride, methanol, and toxins from marine sources.

Slow onset events evolve gradually from incremental changes over many years or from increased frequency or intensity of recurring events. As defined in the Cancun Adaptation Framework (2010), slow onset events include risks and impacts from rising temperatures, desertification, biodiversity loss, land and forest degradation, glacial retreat, ocean acidification, sea level rise, and salinization.

Eighth Circuit Affirmed Bankruptcy Discharge of Climate Claims Against Coal Company

Risk

Fossil fuel

Economic sector

Finance