The Securities and Exchange Commission is drafting regulations intended to eliminate a climate-related disclosure rule adopted in 2024, according to a notice posted on the website of the U.S. Office of Management and Budget. The rule had required publicly traded companies to provide investors with information about climate-related spending, emissions and risks.
Last year the SEC declined to tell a federal court whether it planned to modify the regulations or continue to defend them against legal challenges brought by industry groups and state officials during the prior administration. Those challenges prompted the agency to pause implementation while the litigation proceeded.
President Donald Trump has signaled opposition to the prevailing scientific consensus on climate change, and his administration has taken steps to unwind several regulatory actions implemented under President Joe Biden. In that context, SEC Chair Paul Atkins issued a statement indicating the agency is working to rescind the 2024 rule. Atkins framed the proposed rescission as a return to the SEC's central mandate - limiting mandatory disclosures to information that is material to investors - and as consistent with the agency's legal authority.
Under the Biden administration, the SEC adopted a revised disclosure framework that required firms to disclose climate-related risks, greenhouse gas emissions and related spending to investors. Immediately after that adoption, Republican-led states and an industry trade group filed court challenges, and the SEC placed the rule on hold while those suits were litigated.
Following the presidential transition, the SEC voted in March 2025 to stop defending the 2024 rule in court. Opponents, including industry and conservative critics, had argued the disclosure requirements exceeded the commission's statutory authority. After the SEC's decision not to defend the rule, an appeals court paused further consideration of the case.
The agency may move forward with a formal proposal to rescind the rule once the Office of Management and Budget finishes its review of draft regulatory language. At this stage, the timeline for any final action by the SEC remains unclear.
Key points
- The SEC is preparing regulations to rescind a 2024 climate disclosure rule that required companies to report climate-related risks, emissions and spending.
- The rule was paused after industry and state-level legal challenges; the SEC voted in March 2025 to stop defending it in court.
- The proposed rescission is tied to the agency's stated intent to focus mandatory filings on information it views as material to investors; final action awaits OMB review.
Sectors likely affected
- Publicly traded companies subject to SEC disclosure rules
- Legal and compliance service providers engaged in regulatory filings
- Investor groups and asset managers who use company disclosures
Risks and uncertainties
- Legal uncertainty - ongoing court challenges and the appeals courts pause create an unclear legal environment for the rule's future.
- Regulatory timing - the SEC's next steps depend on the Office of Management and Budget's review timetable, which the notice did not make definitive.
- Policy continuity - changes in administration priorities have directly influenced whether the rule is defended or rescinded, leaving the regulatory trajectory unsettled.