DOJ Escalates Fight Over New York Climate Superfund, FEMA Staffers' Warning on US Disaster Preparedness, New Climate Risk Platform, and More

The US Department of Justice (DOJ) escalated its legal fight against states’ efforts to make oil and gas majors pay for adaptation measures by calling on a district court to invalidate New York’s Climate Superfund law.

“New York has declared war on those responsible for supplying our Nation with reliable and affordable energy, and it is trampling over federal law in the process,” DOJ lawyers claimed in a motion for summary judgement filed last Friday. “The Court should end New York’s lawless overreach by granting the United States’ motion for summary judgment, declaring the Superfund Act invalid and unenforceable, and permanently enjoining Defendants from taking any actions to implement or enforce it,” the filing reads.

New York’s Climate Change Superfund Act, signed into law by Governor Kathy Hochul last December, would force fossil fuel companies to pay up to US$75bn over 25 years for “climate change adaptive infrastructure projects.” On signing the law, Hochul said it would “hold polluters responsible for the damage done to our environment” and finance “major investments in infrastructure and other projects critical to protecting our communities and economy.” New York was the second state to pass a Superfund law after Vermont, which is facing its own legal challenges from the federal government and fossil fuel industry.

Attorneys with the Justice Department’s Environment and Natural Resources Division (ENRD) wrote that the New York law represents an attempt by the state to regulate emissions — which they say is a right preserved for the federal government — and would impose costs on oil and gas companies for lawful actions in other states. While the law would fine fossil fuel companies in proportion to their worldwide emissions from 2000 to 2018, it does not put constraints on their current or future emissions.

The DOJ also filed a motion opposing an effort by environmental groups to intervene in the case, claiming they would distract from the core dispute over the constitutional balance of power between state and federal governments. Food & Water Watch, West Harlem Environmental Action, Citizens Campaign for the Environment, Catskill Mountainkeeper, Fridays for Future NYC, and Third Act Initiative applied to join the case on August 15. 

“As taxpayers in municipalities and counties throughout upstate New York, we demanded that those fossil fuel companies most responsible for pollution be held accountable for their role in climate change by contributing a fair share to reduce the heavy burden on our local governments for infrastructure repairs from severe storms and to fund climate adaptation and resilience projects,” said Michael Richardson, Co-facilitator of Third Act Upstate New York, on the filing of the motion to intervene.

Brazil has won the support of all eight Amazon basin nations for its proposed Tropical Forest Forever Facility (TFFF), a US$125bn global fund to finance tropical forest conservation. The facility would invest for the long term in high yielding fixed income instruments, which would throw off cashflows for 74 developing countries to combat deforestation. Under the latest proposed structure, the TFFF would earmark 20% of resources for Indigenous and local communities. However, no country has pledged funds to the facility at present. Brazil aims to launch the fund at COP30 in November. (Bloomberg)

The European Commission has approved Denmark's €626mn (US$732mn) afforestation initiative, which aims to support the country’s efforts to convert 10% of its land into forest by 2045. The scheme, effective until 2030, will pay landowners to transform agricultural terrains into forests, covering their costs and compensating for income loss. This initiative is intended to strengthen environmental protections and contribute to climate mitigation and adaptation. (European Commission)

Nearly 85% of respondents to Bloomberg Intelligence’s latest ESG Investor Survey expect ESG assets under management (AUM) to grow over the next two years, with two-thirds anticipating a similar rise for climate-focused AUM. Investors say ESG investing practices can yield improved risk-adjusted returns and unlock deeper insights into companies. While climate remains central to most investors’ strategies, two-thirds flagged ongoing data gaps related to climate scenario analysis, Scope 3 emissions, and climate physical risk. (Bloomberg)

The 2025 proxy season was marked by a sharp 25% drop in sustainability-related shareholder resolutions, driven largely by the chillier regulatory climate in the US and shifting investor tactics. New SEC guidance made it easier for companies to omit proposals, leading to a 41% surge in no-action requests and cutting the volume of US filings nearly in half. Environmental and social proposals waned, particularly on climate, with resolutions more focused on disclosure than target-setting. (Principles for Responsible Investment)

Staffers at the Federal Emergency Management Agency (FEMA) were placed on administrative leave last Tuesday, a day after signing an open letter to Congress warning that the Trump administration’s restructuring of the agency threatens to undermine America’s capacity to respond to disasters.

The letter, titled the “Katrina Declaration” — a reference to the devastating hurricane that leveled New Orleans 20 years ago — accuses President Trump and Homeland Security Secretary Kristi Noem, whose department oversees FEMA, of hobbling the agency’s ability to react swiftly to unfolding climate-related disasters. It also rails against the appointing of unqualified political loyalists to senior leadership positions and the gutting of funds for climate adaptation programs.

“Our shared commitment to our country, our oaths of office, and our mission of helping people before, during, and after disasters compel us to warn Congress and the American people of the cascading effects of decisions made by the current administration,” the letter reads. It calls on Congress to make FEMA a Cabinet-level agency, independent from political interference and empowered to act quickly when disaster strikes. As of September 1, the letter had 191 FEMA signatories, most of which were anonymous.

CNN reports that 24 hours after the letter went public, some named signatories received emails saying they had been placed on administrative leave. The messages ordered them to stay away from FEMA facilities and to refrain from conducting agency business.

“I’m disappointed but not surprised,” Virginia Case, a supervisory program analyst who has been placed on leave, told CNN. “I’m also proud of those of us who stood up, regardless of what it might mean for our jobs. The public deserves to know what’s happening, because lives and communities will suffer if this continues.” She added that at least six other FEMA workers received similar notices.

FEMA responded by framing the protest as bureaucratic resistance to needed reforms. “Change is always hard,” a spokesperson said. “Under the leadership of Secretary Noem, FEMA will return to its mission of assisting Americans at their most vulnerable.”

Nearly one-third of FEMA’s full-time workforce has reportedly left the agency this year, eroding the institutional knowledge built up since Hurricane Katrina, when nearly 1,400 people died amid federal inaction.

The US Environmental Protection Agency (EPA) is working on a draft rule to strip federal protections from vast swaths of American wetlands, according to an internal presentation obtained by E&E News. The new regulations would redefine “waters of the US” to only include wetlands with surface water during the wet season that directly touch a relatively permanent waterbody. EPA staff warned this test lacks scientific basis and could open the door to increased pollution, especially in the West where many wetlands are seasonal or groundwater-fed. Increased development on wetlands could heighten flooding risks for communities, too. (E&E News)

The Northeast Climate Adaptation Science Center at UMass is set to shut down by the end of September unless the White House’s Office of Management and Budget unblocks congressionally approved funding. OMB’s decision to withhold US$69.3mn earmarked for the national network of Climate Adaptation Science Centers — and to redirect US$14mn elsewhere — has triggered accusations of illegal budget impoundment and political interference. (Daily Hampshire Gazette)

The European Union voted in favor of the “Sevilla Commitment”, the outcome of the UN’s Fourth International Conference on Financing for Development (FFD4), but formally disassociated from two key paragraphs over concerns about debt restructuring and climate finance language. In an Explanation of Vote delivered at the UN General Assembly, the EU warned that proposed changes to global debt resolution risk splintering the existing architecture, which could undermine “trust built up over the years between different classes of creditors.” On climate, the bloc criticized the omission of agreed Paris Agreement language on equity and differentiation, and flagged the failure to call for finance mobilization from “all actors” as a major setback. (Delegation of the European Union to the United Nations in New York)

UK-based climate tech start-up TransZero has debuted a new online platform designed to help companies understand how floods, storms, and other extreme weather events could impact their real estate assets and craft effective resilience strategies in response.

The platform combines geospatial insights, climate models, and AI to produce tailored insights for property portfolios globally. It was developed in collaboration with firms in asset management, banking, and retail, where demand for climate risk tools is accelerating. “Detailed climate risk assessments are fast becoming a core part of enterprise risk management,” said Co-Founder Daniel Yarnold. While regulatory pressure is one driver, he sees increasing engagement from sustainability and risk teams seeking to future-proof operations as another.

The platform launches as climate-linked disasters become both more frequent and more costly. Co-Founder Dr Iain Willis notes that between 1980 and 2014, 78% of global economic losses from natural hazards stemmed from weather-related events, with storms and floods alone accounting for over three-quarters of those losses. “The combination of highly interconnected supply chains alongside the shifting frequency and severity of extreme weather events is driving an urgent need for companies to understand their exposure,” Willis said. AI plays a key role in the platform’s value, he adds, helping to uncover complex patterns and correlations in risk data across property portfolios that human analysts might miss.

Willis previously worked as Research Director at the Gallagher Research Centre, housed by global reinsurer Gallagher Re. Yarnold is an investor and previously co-founded data software company IntoZetta. The third Co-Founder, David Bamford, was also at IntoZetta.

RMI’s climate tech accelerator, Third Derivative, has added 18 new startups to its growing global portfolio, spotlighting emerging innovations across sectors crucial to adaptation and decarbonization. The new cohort spans six countries and includes breakthroughs like adaptive thermal management for buildings, bio-based concrete additives, zero-emission hydrogen systems, and energy-smart construction materials. Third Derivative’s portfolio now tops 280 companies across 27 countries. Together, the start-ups have raised US$3.7bn since joining the accelerator. (RMI)

Uncovered Fund, a Tokyo-based tech venture company, has teamed up with Japanese financial giant Monex to launch a US$20mn fund targeting early-stage fintech, mobility, retail, logistics, and climate tech startups across Africa and the Middle East. The investment partnership envisions cutting initial checks of US$500,000 and follow-ons up to US$2mn. (TechCabal) 

Former US federal climate staffers and data experts have pledged to restore public climate risk information taken offline by the Trump administration. Led by former climate.gov project manager Rebecca Lindsey, the team is rebuilding lost content — like the interactive website for the Fifth National Climate Assessment — at a new home: climate.us. The group is seeking seed funding and i planning a crowdfunding campaign, with support from non-profits Multiplier and the Environmental Data and Governance Initiative. (CNN)

New Zealand has fired up its most powerful supercomputer yet for conducting climate and hazard modeling. The NZD$35mn (US$21mn) machine — called ‘Cascade’ — is three times faster than its predecessor and delivered its first weather forecast last week. Officials say Cascade will support more frequent, high-resolution simulations of floods, droughts, seismic events and long-term climate impacts. (NIWA)

MIT researchers have found that simpler physics-based models often outperform deep-learning counterparts in climate prediction scenarios, particularly for regional temperature forecasting. Their study highlights the need for improved benchmarking techniques, and cautions against the blanket adoption of large AI models in climate science, suggesting a tailored approach integrating physics principles could better serve policymakers. (MIT)

Long-term impacts of heatwaves on accelerated ageing (Nature Climate Change)

Research on the impact of climate change on food security in Africa (Scientific Reports)

Climate change impacts on roadways (Nature Reviews Earth & Environment)

Marine protected areas enhance climate resilience to severe marine heatwaves for kelp forests (Journal of Applied Ecology)

Inequality in human exposure to future climate extremes (Nature Communications)

Integrating climate change into macroeconomic analysis: A review of impact channels, data, models, and scenarios (IMF Working Papers)

A deep learning Earth system model for efficient simulation of the observed climate (AGU Advances)

Thanks for reading!

Louie Woodall
Editor