As previously reported in our last post, The Fate of the New U.S. Climate Change Rules Under the New Republican Administration, legal challenges to the SEC’s rules mandating extensive new climate change disclosure is ongoing in the 8th Circuit U.S. Court of Appeals, and has been fully briefed and awaiting oral arguments.
Today, the Acting Chairman of the SEC reiterated his prior position that the agency lacked authority to promulgate the rules, and announced that he would ask the court to pause the litigation so that the SEC can consider its next steps. The Acting Chairman likely wishes to await Senate confirmation of the permanent Chairman before taking action. It remains unclear what the SEC will ultimately do, although today’s announcement suggests that the SEC would likely withdraw the new rules in due course. If the SEC decides to materially amend the rules, in light of international pressure, it would withdraw the current rules and re-commence the process for issuing new rules.
Doubt as to the future of the SEC’s climate disclosure rules is likely to accelerate efforts in some states to follow California’s lead and adopt their own rules. For further information on California climate change rules, please see here: