The Securities and Exchange Commission is preparing regulatory language to eliminate a Biden-administration rule that had required publicly traded companies to report climate-related risks, greenhouse gas emissions and climate-related spending to investors, according to a notice posted on the U.S. budget office website.
The effort to rescind the rule comes after the SEC spent roughly a year without telling a federal court whether it intended to modify the 2024 regulations or defend them against legal challenges brought by industry and Republican-led states. Following that period of uncertainty, the agency has moved toward undoing the disclosure requirement.
SEC Chair Paul Atkins said the agency is working to withdraw the rule in order to refocus corporate disclosure obligations on information that is material to investors, a standard he said is consistent with the SEC's legal authority. The chair framed the proposed rollback as a return to the agency's core disclosure mandate.
The disclosure requirements in question were adopted under former President Joe Biden and obliged publicly listed companies to provide investors with details on climate-related risks, emissions and the amount of corporate spending tied to climate issues. Those rules prompted immediate legal challenges from a coalition of Republican-led states and an industry group, and the SEC placed the regulations on hold while the litigation proceeded.
In March 2025 the SEC voted not to continue defending the rule in court, a decision that followed criticism from industry and conservative groups asserting the regulation exceeded the commission's statutory authority. After the SEC's decision to cease defending the rule, an appeals court suspended further consideration of the case.
The SEC's proposed rescission will move forward only after the Office of Management and Budget completes its review of the draft regulations; the notice did not include a timetable for final action. As a result, the schedule for any definitive regulatory change remains unspecified.
Clear summary
The SEC has drafted regulations aimed at rescinding a 2024 climate disclosure rule. The proposal was disclosed on the U.S. budget office website and awaits review by the Office of Management and Budget. The action follows litigation and a period during which the SEC did not inform a federal court whether it would defend or alter the rule; the agency voted in March 2025 to stop defending it and the appeals court suspended consideration.
Key points
- Regulatory change: The SEC is developing rules to remove a requirement that public companies disclose climate-related risks, emissions and spending to investors.
- Legal backdrop: The 2024 regulation was immediately challenged in court by Republican-led states and an industry group and was stayed while litigation proceeded.
- Securities oversight focus: The SEC Chair emphasized restoring a materiality-focused disclosure framework that the agency believes aligns with its legal authority.
Risks and uncertainties
- Timing uncertainty - The Office of Management and Budget must finish its review before the SEC can act, and no timeline has been provided.
- Legal uncertainty - An appeals court has suspended consideration of the related case after the SEC voted in March 2025 to stop defending the rule, leaving the ultimate judicial outcome unclear.
- Regulatory uncertainty - The year-long period during which the SEC did not notify the federal court whether it would modify or defend the rule contributed to procedural and market uncertainty for affected companies.