Amid rising concern about global heating and soaring energy costs, the state of Michigan has sued major oil companies, alleging that they colluded to hamper the adoption of renewable energy and electric vehicles (EVs).

Michigan’s case specifically targets BP, Shell, Chevron, and Exxon Mobil, as well as the largest US oil lobby group, the American Petroleum Institute (API).

First-of-its-kind complaint

It’s not a typical climate-damage suit seeking compensation for sea-level rise or storm costs; it’s framed as anti-competitive conduct under federal and state antitrust law, alleging collusion to harm consumers and competitors (renewables/EVs). It relies on antitrust law rather than traditional climate arguments.

In a first-of-its-kind complaint, the state’s attorney general, Dana Nessel, accused four fossil fuel majors and the top US oil lobbying group last month of acting as a ‘cartel’ as part of an effort to stifle the growth of renewable energy and electric vehicles (EVs), while suppressing information about the dangers of the climate crisis.

‘Energy affordability crisis’

The companies’ ‘collusion’ drove up Michigan utility costs and slowed the transition away from gas-powered cars, according to the filing. Electricity costs in Michigan have surged, with average residential rates increasing by nearly 120% in the last two decades.

“Michigan is facing an energy affordability crisis as our home energy costs skyrocket and consumers are left without affordable options for transportation,” Nessel said.

“These out-of-control costs are not the result of natural economic inflation, but due to the greed of these corporations who prioritized their own profit and marketplace dominance over competition and consumer savings.” And though electric car adoption is increasing, EVs and hybrids accounted for less than 4% of total registered vehicles statewide last year.

Michigan highly dependent on oil and gas

Federal and state courts have dismissed lawsuits seeking climate-related damages in Delaware, Maryland, New Jersey, New York, Pennsylvania, Puerto Rico, and South Carolina.

“This lawsuit also ignores the fact that Michigan is highly dependent on oil and gas to support the state’s automakers and workers,” Chevron counsel Theodore J. Boutrous Jr. said.

Legal roadblocks

“These baseless lawsuits are a coordinated campaign against an industry that powers everyday life, drives America’s economy, and is actively reducing emissions. We continue to believe that energy policy belongs in Congress, not a patchwork of courtrooms,” said American Petroleum Institute senior vice president and general counsel Ryan Meyers.

Historically, many state and local governments — and even cities — have sued fossil fuel companies. But most of these have ended with dismissals or legal roadblocks because any climate harms are diffuse and global, so judges find standing lacking.

‘Too political’ for judges?

Courts sometimes say climate policy questions are too ‘political’ or complex for judges and should be left to Congress or agencies. As a result, even high-profile cases in states like New York, New Jersey, and others have been dismissed before reaching trial.

Maybe the Michigan case is an exception because the state is not directly asking courts to order carbon emission cuts or climate remediation. Instead, it argues corporate conduct suppressed clean-energy competition and hurt consumers. It links fossil fuel use to economic harm (higher costs, reduced competition, slower EV adoption).