SEC moves to repeal climate reporting rules

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🗞️ Driving the news: The U.S. Securities and Exchange Commission is preparing to rescind its 2024 climate disclosure rules, reversing Biden-era requirements for public companies to report climate risks, severe weather impacts and, in some cases, greenhouse gas emissions

🔭 The context: The rules were adopted under former SEC Chair Gary Gensler but quickly faced legal challenges and were paused in 2024
• Under new Chair Paul Atkins, the SEC has dropped its legal defense and is now preparing a formal recommendation to repeal the rules, arguing for a return to a materiality-focused approach to securities regulation

🌍 Why it matters for the planet: Repealing the rules could reduce mandatory transparency on corporate climate risks and emissions in the U.S., making it harder for investors, regulators and the public to assess how companies are exposed to extreme weather, transition risks and decarbonization pressures
• It may also widen the gap between U.S. disclosure rules and stricter climate reporting regimes in Europe and other markets

⏭️ What’s next: The SEC will need to launch a new rulemaking process, including legal justification, public consultation and review of comments
• Any final repeal could still face legal challenges

💬 One quote: “SEC staff is preparing a recommendation to the Commission to rescind the agency’s 2024 climate rules.” — SEC spokesperson

📈 One stat: The 2024 rules marked the first time U.S. public companies faced federal requirements to disclose climate-related business risks

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