The SEC is officially moving forward with a proposal to rescind its 2024 Climate-related Financial Disclosure Rules. The agency sent a proposed rulemaking to the Office of Information and Regulatory Affairs outlining its intentions. Wilson Sonsini writes of the development:
“The submission of this proposed rulemaking signals that the SEC is moving forward with a proposal to rescind the Climate Rules. Although the rules technically remain in place (i.e., they have not been vacated by a court, nor have they have been formally rescinded through rulemaking), they have been voluntarily stayed since April 2024.”
The SEC rules were viewed by many as a major regulatory push that would solidify the importance of climate risk disclosures federally. However, the rules were immediately challenged in federal court, where the SEC agreed to a voluntary stay until litigation could be resolved. 2025 ushered in the new administration and with it, new SEC leadership. The rescission is not unexpected, though some speculated that the SEC may allow the Supreme Court to rule on the matter in the hopes of stemming similar rules in the future. It appears that window will not be left open as the agency moves to scrap the rule, likely rendering the pending litigation moot. Now we’ll see if state climate disclosure laws like those in California and New York effectively fill the gap left by the SEC.
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