New Jersey Proposes Insurance Surcharges and Oil Fees for Climate Resilience

In response to increasing climate-related disasters, a New Jersey group has proposed a 2% surcharge on property insurance policies and mandatory fees on the oil and gas industries to fund climate resiliency projects.

Published on July 22, 2024

climate

In response to increasing climate-related disasters, a New Jersey group has proposed a 2% surcharge on property insurance policies and mandatory fees on the oil and gas industries to fund climate resiliency projects. This proposal aims to proactively invest in infrastructure to protect against future storms and environmental impacts.

Legislative and Public Support

The initiative includes holding a public referendum for voter approval and creating a “Superfund” financed by the proposed surcharges. Similar legislation has been introduced in other states, such as New York and Massachusetts, emphasizing a proactive approach to disaster preparedness.

Addressing Climate Vulnerability

New Jersey has experienced significant climate-related challenges, with 14 federally declared disasters from 2011 to 2021. The proposed measures aim to secure a stable funding source for long-term resiliency projects, enhancing the state’s ability to withstand and recover from severe weather events.

The proposed insurance surcharges and oil fees represent a strategic move to enhance New Jersey’s climate resilience. By securing dedicated funding for proactive measures, the state aims to mitigate the impact of future climate-related disasters and safeguard its communities and infrastructure.