Trump-Era SEC Moves to Kill Climate Disclosure Rule as Federal Climate Rollback Expands
The Securities and Exchange Commission has proposed rescinding the climate-related disclosure rules adopted during the Biden administration, marking one of the most significant federal climate-policy reversals since President Donald Trump returned to office.
The rule, approved in 2024, would have required publicly traded companies to disclose certain climate-related risks and financial impacts to investors. It was intended to create more standardized reporting on how climate change could affect corporate operations and financial performance.
The regulation never took effect after a wave of legal challenges from business groups and Republican-led states. In 2025, the SEC voted to stop defending the rule in court, signaling a major shift in the agency’s position under new leadership.
SEC Chair Paul Atkins said the agency should focus on disclosures that are materially relevant to investors and within the commission’s statutory authority. The SEC now argues the climate-reporting requirements imposed substantial costs on companies and exceeded the agency’s mandate.
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The proposal fits within a broader Trump administration approach that has emphasized deregulation, energy production, and limiting federal climate mandates. Since returning to office, the administration has moved away from several climate-focused initiatives advanced during the Biden years.
Supporters of the original disclosure rule say climate-related risks can affect corporate earnings, insurance costs, supply chains, and long-term investment decisions. Critics argue the requirements would have increased compliance costs and pushed companies into politically charged reporting obligations.
The SEC’s proposal now enters a public-comment period before any final decision is made, leaving the future of federal climate-disclosure requirements uncertain.
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