The Securities and Exchange Commission (SEC) has voted to end its defense of the climate disclosure rules requiring companies to report climate-related risks and greenhouse gas emissions. These rules, adopted on March 6, 2024, aimed to establish a comprehensive disclosure framework for issuers and reporting companies. However, they have faced legal challenges from several states and private parties, leading to the consolidation of lawsuits in the Eighth Circuit under Iowa v. SEC, No. 24-1522. The SEC had already paused the rules’ implementation pending the outcome of the litigation.
Following the Commission’s vote, SEC staff submitted a letter to the court stating that the agency is withdrawing from defending the rules. The letter also noted that Commission counsel are no longer authorized to support arguments previously submitted in court filings and that the SEC will not use its allotted time during oral arguments. Acting SEC Chairman Mark T. Uyeda explained that the decision reflects a move to step away from defending regulations that are viewed as costly and overly intrusive. This marks a significant shift in the agency’s approach to climate-related regulatory policy amid ongoing political and legal scrutiny.
