Hawaii Targets Fossil Fuel Firms Over Climate Costs

HONOLULU — Policymakers in Hawaii are intensifying efforts to address the escalating crisis in the state’s home insurance market, which has been profoundly affected by climate-related disasters. In a landmark move last year, the Hawaii State Legislature passed legislation urging property insurers to pursue legal action against major oil and gas corporations rather than transferring the financial burden of climate change damages onto consumers through rising premiums.

Between 2025 and 2026, many homeowners across the islands have seen their insurance premiums surge by 50 per cent or more, placing significant financial strain on middle-income and working families. The situation is exacerbated by an increasing trend of non-renewals, with insurers tripling their refusal to renew policies between 2018 and 2023. As a result, some homeowners are forced into costly alternative coverage, while others face the alarming prospect of being entirely uninsured.

In response, Senate Bill 3000 has secured committee approval, granting Hawaii Attorney General Anne Lopez authority to seek compensation from major oil and gas companies. The initiative aims to recover a fair share of insurance costs incurred after severe climate-driven weather events. Lawmakers note parallels with historical legal strategies against the tobacco industry in the 1990s and, more recently, against pharmaceutical companies responsible for the opioid crisis, emphasising accountability for corporate contributions to public harm.

Funds recovered through these legal actions would help offset the financial deficits of the Hawai‘i Property Insurance Association, which provides coverage for homeowners unable to secure private insurance. Additionally, funding would bolster the Hawai‘i Hurricane Relief Fund, providing a financial safety net for condominium insurance holders.

The devastating 2023 wildfires on Maui underscore the urgency of these measures, causing over 100 deaths and insured losses exceeding $2 billion, while county recovery costs approached $7 billion. Experts attribute the destruction to record hurricane-force winds and prolonged droughts, both linked to climate change, and note that the world’s largest oil and gas corporations have been aware of the environmental impacts of their products since the 1970s. Critics argue that, despite scientific warnings, these companies misled the public and delayed transitions to renewable energy.

The situation is further complicated by Hawaiian Electric Co.’s proposal to raise electricity rates to fund wildfire prevention efforts, compounding the financial pressures on residents already facing steep insurance premiums. Similar legislation has been proposed in California and New York, reflecting a broader push to hold polluters accountable for climate-related damages. Hawaii officials emphasise that the costs of climate change should not fall solely on ordinary taxpayers—those who profit from fossil fuels must contribute their fair share.