The U.S. Securities and Exchange Commission has proposed to withdraw in full its 2024 climate disclosure regime for public companies, which would have required climate-related information in registration statements and annual reports for virtually all issuers. The Commission says the rules exceed its statutory authority and should be removed in favor of the existing registrant-specific, materiality-based disclosure framework, under which climate-related matters are disclosed when material under current SEC rules and anti-fraud provisions. The rescission would eliminate requirements covering greenhouse gas emissions, governance and management of climate-related risks, scenario analysis, internal carbon prices, climate targets and goals, and certain financial statement effects of severe weather and other natural conditions. The Commission also argues the rules were unnecessary because existing disclosure requirements already capture material climate impacts, imposed substantial compliance costs not justified by their benefits to some investors, and conflicted with its objectives of facilitating capital formation and promoting public company status. In its economic analysis, the SEC estimates rescission could produce annualized savings of about USD 4.9 billion per year over the next 10 years for affected registrants. The 2024 rules remain stayed pending litigation. After the Commission ended its defense of the rules on March 27, 2025, the U.S. Court of Appeals for the Eighth Circuit held the consolidated petitions for review in abeyance until the SEC reconsiders the rules through notice-and-comment rulemaking or renews its defense. The comment period on the rescission proposal runs for 60 days after publication in the Federal Register.
U.S. Securities & Exchange Commission2026-05-29
U.S. Securities and Exchange Commission proposes full rescission of climate disclosure rules with 60 day comment period
The U.S. Securities and Exchange Commission has proposed to rescind in full its 2024 climate disclosure regime for public companies and revert to the existing materiality-based disclosure framework. The SEC cites lack of statutory authority, redundancy with existing requirements, high compliance costs, and conflicts with its capital formation objectives, and estimates annualized savings of about USD 4.9 billion over 10 years. The 2024 rules remain stayed pending litigation before the U.S. Court of Appeals for the Eighth Circuit.