The Securities and Exchange Commission (SEC) announced Tuesday that it would not defend a year-old rule that required publicly held companies to disclose climate-related risks and in some cases require emission details. did.
“The rules are deeply flawed and can cause great harm to the capital markets and our economy,” Sec Chairman Mark Ueda said in a statement.
The SEC rules, finalized in March 2024, required emissions disclosures if the information could affect investment decisions. It passed 3-2 along the party line and Ueda passed one of two Republican votes against it.
The rules represent a major compromise from the original 2022 SEC proposal. This required all public companies to disclose direct emissions and in some cases further information about indirect emissions within the supply chain.
The final regulations also eliminated the requirement to disclose emissions created by the product after it was sold. This could have had a particularly significant impact on fossil fuel companies. This is because it was mandatory to spell out emissions related to combustion oil and gas.
The final regulations' emission disclosure requirements began in 2026 for large companies and at the start of mid-sized companies in 2028.
Senator Minecround (Rs.D.), a member of the Senate Banking Committee, welcomed the SEC's decision. Social Media Post Tuesday“The SEC's excessive climate rules will be putting a burden on farmers, ranchers and small businesses with costly reporting requirements and deficits. I'm glad to see it cancelled today. is.”
The SEC move shows the latest from the Trump administration to unleash the Biden administration's rules on environmental and energy policies.
Much of the rollback and reversal comes through the internal sector and the Environmental Protection Agency, but last week the transportation sector has launched a $5 billion electric vehicle charger program funded under the bipartisan infrastructure law. It was announced that it would be suspended.
