On Thursday, March 27, the SEC voted to end its defense of rules requiring the disclosure of climate-related risks and greenhouse gas emissions.
Acting SEC Chair Mark T. Uyeda stated: “The purpose of the Commission’s action and today’s notice to the court is to cease its involvement in defending the costly and unnecessarily intrusive climate change disclosure rules.”
The rules, adopted by the Commission on March 6, 2024, established a special, detailed, and extensive disclosure regime regarding climate risks for reporting and emitting companies.
The rules have been challenged by states and individuals. The litigation was consolidated in the Eighth Circuit (Iowa v. SEC, No. 24-1522 (8th Cir.)), and the Commission had previously stayed the effectiveness of the rules pending the outcome of the case. Briefing in the case was completed before the change in administration.
Following the Commission’s vote, SEC staff sent a letter to the court stating that it was withdrawing its defense of the rules and that Commission attorneys are no longer authorized to present arguments in support of the Commission’s brief. The letter indicates that the Commission defers to the court on the timing of oral arguments.
