"WASHINGTON -- If you live in a city or county that sues oil companies over climate change, prepare for a blowback. ExxonMobil and other fossil fuel giants are taking legal action against such local governments, seeking to undermine a key part of their finances — their relationship with lenders.
Exxon’s target is several California cities and counties that have filed state lawsuits, claiming the oil and coal industries worked for decades to cover up their role in climate change and the consequences. The local governments want the industries to pay for damage and adaptation costs resulting from climate change, including sea-level rise and more extreme storms.
Exxon responded last month by petitioning a state court in Tarrant County, Texas — near the company’s headquarters in Irving — to subpoena California officials and lawyers involved with the lawsuits. In a novel legal tactic, Exxon alleges the local government officials are defrauding buyers of municipal bonds by not disclosing to lenders the climate risks they have claimed in their lawsuits."