The US Securities and Exchange Commission has proposed to revoke a controversial climate reporting rule introduced under Biden, citing overreach and legal costs, amid ongoing litigation and a broader regulatory shift under the current administration.
The US Securities and Exchange Commission has moved to scrap a Biden-era climate disclosure rule that would have required many publicly traded companies to report greenhouse gas emissions and spell out climate-related financial risks.
According to the agency, the proposed repeal reflects its view that the 2024 rule went beyond the SEC’s authority and would have imposed costs that were not justified by the benefits. The rule, adopted in March 2024 on a 3-2 party-line vote, quickly triggered a wave of lawsuits from business groups, states and other challengers, and its implementation was paused while the litigation played out.
The reversal is the latest sign of a wider regulatory retreat under President Donald Trump’s second term. Environmental rules have been loosened across federal agencies, and the SEC itself had already stepped back from defending the climate disclosure regime earlier this year. In February 2025, acting chair Mark Uyeda directed staff not to press ahead with oral argument in the case while commissioners considered whether to keep fighting for the rule. In March 2025, the commission said it would no longer defend it.
Under the original rule, large public companies would have faced phased-in reporting obligations on direct emissions, and in some cases indirect emissions, along with information about how climate risks could affect strategy, operations and financial statements. Certain companies would also have been required to obtain independent assurance over parts of the emissions data.
Supporters of the rule had argued that standardised climate reporting would improve transparency for investors. Critics, including the US Chamber of Commerce, said the requirements were expensive, intrusive and legally flawed. Environmental and investor advocates, by contrast, warned that removing the rule would leave markets with less information about climate-related financial risk.
The SEC said the repeal proposal will be open for public comment for 60 days after publication in the Federal Register.
- https://marcellusdrilling.com/2026/06/trump-sec-to-rescind-biden-sec-oil-gas-ghg-disclosure-reg/ – Please view link – unable to able to access data
- https://apnews.com/article/d70ee730c8a124f6767ca327fe903846 – The U.S. Securities and Exchange Commission (SEC) has proposed repealing a 2024 Biden-era rule that required certain public companies to disclose their greenhouse gas emissions and assess climate risks. The SEC argues that the rule exceeds its legal authority and imposes unjustified costs. Environmental and investor advocacy groups have criticised the move, warning that it deprives investors of critical information about climate-related financial risks. The repeal is part of a broader wave of environmental deregulation under President Trump’s second term, including major rollbacks by the Environmental Protection Agency (EPA). Critics argue that the repeal undermines transparency and investor protection. The SEC will accept public comments on the proposed repeal for 60 days after it is published in the Federal Register.
- https://www.axios.com/2024/03/15/sec-climate-rules-chamber-of-commerce-lawsuit – The U.S. Chamber of Commerce filed a lawsuit against the Securities and Exchange Commission (SEC) over its new climate risk disclosure rules. These rules mandate that large public companies must provide detailed disclosures about greenhouse gas emissions and the risks climate change poses to their operations. The goal is to provide investors with greater transparency about companies’ environmental impact and climate-related financial risks. The Chamber’s legal challenge reflects the ongoing controversy and strong lobbying surrounding the rule. In response, the SEC stated that it acted within its legal authority and intends to vigorously defend the new regulations in court.
- https://www.powermag.com/sec-ends-defense-of-climate-disclosure-rules-citing-cost-and-intrusiveness/ – The U.S. Securities and Exchange Commission (SEC) announced on March 27, 2025, that it will no longer defend its controversial rules requiring companies to disclose climate-related risks, greenhouse gas (GHG) emissions, and governance practices. The decision, approved in a 3-2 vote along party lines, marks a significant shift in the agency’s approach to climate-related financial disclosures. The federal financial oversight body adopted final rules in a historic 3-2 vote on March 6, 2024, under the Biden administration that mandated detailed reporting on climate risks and emissions by publicly traded companies. The move culminated two years of public debate and drew more than 24,000 comments but quickly sparked legal challenges. For energy-intensive sectors like power, the rules would have required disclosure of Scope 1 (direct) and Scope 2 (indirect) greenhouse gas emissions, if material, on a phased-in basis.
- https://www.finpublica.org/esg-administrative-actions-us-biden – As of March 2024, the SEC proposed a rule that would enhance and standardize public company climate disclosures. The proposed rule would require issuers to disclose information regarding: (1) the company’s governance of climate-related risks and risk management process; (2) any material impact that climate-related risks are likely to have on the company’s business and financial statements; (3) how climate-related risks are likely to affect the company’s strategy, business model, and outlook; (4) the impact of climate-related events and transition activities on the company; and (5) the company’s greenhouse gas (GHG) emissions. With regards to GHG, the rule would require disclosure of direct emissions (Scope 1) and indirect emissions related to electricity or other energy purchased by the company (Scope 2). Additionally, companies “would be required to disclose GHG emissions from upstream and downstream activities in its value chain (Scope 3), if material or if the registrant has set a GHG emissions target or goal that includes Scope 3 emissions.” Certain companies (accelerated and large accelerated filers) would be required to include an independent attestation report addressing their Scope 1 and 2 disclosures. According to the SEC, “the proposed disclosures are similar to those that many companies already provide based on broadly accepted disclosure frameworks, such as the Task Force on Climate-Related Financial Disclosures and the Greenhouse Gas Protocol.”
- https://www.arnoldporter.com/en/perspectives/advisories/2025/02/sec-halts-defense-of-the-climate-related-disclosures-rule – The U.S. Securities and Exchange Commission (SEC) has taken a critical step toward dialing back the Climate-Related Disclosures for Issuers Rule (Climate Rule) which was promulgated under the Biden-Harris administration and immediately challenged in litigation. On February 11, 2025, SEC Acting Chair Mark Uyeda issued a statement explaining that he directed SEC staff to request the U.S. Court of Appeals for the Eighth Circuit not to schedule oral arguments on the challenge to the Climate Rule until the Commission decides whether to continue defending it. Although the views of the new administration made this policy reversal foreseeable — if not inevitable — it is still a significant development. Regardless of this policy change, registrants and securities practitioners should be cognizant that existing regulation will continue to apply and require disclosures of material information, events, and risks that fall within environmental, social, and governance (ESG) categories like climate risk.
- https://eelp.law.harvard.edu/sec-declines-to-defend-or-rescind-climate-risk-disclosure-rule/ – In March 2024, the Securities and Exchange Commission (SEC) finalized its climate-related risk disclosure rule, which would have required public companies to report on material climate-related risks that affect their business and required some large companies to disclose their greenhouse gas emissions, if material. Industry, state attorneys general, and NGOs immediately challenged the rule. The SEC opted to suspend the rule’s implementation as the litigation proceeded, so it never took effect during the Biden administration. Under the Trump administration, the Commission has declined to defend the rule, though it has taken no steps to rescind it despite stating that the majority of current Commissioners believe SEC lacked statutory authority to promulgate the rule.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The article reports on the SEC’s recent proposal to rescind the climate disclosure rule, with the earliest known publication date being May 29, 2026. ([sec.gov](https://www.sec.gov/newsroom/press-releases/2026-49-sec-proposes-rescission-climate-related-disclosure-rules?utm_source=openai)) The Marcellus Drilling News article was published on June 2, 2026, indicating timely reporting. However, the source is a niche publication, which may affect the freshness score.
Quotes check
Score:
7
Notes:
The article includes direct quotes from SEC Chairman Paul Atkins and references to previous SEC actions. While these quotes are consistent with other reputable sources, such as the SEC’s official press release, ([sec.gov](https://www.sec.gov/newsroom/press-releases/2026-49-sec-proposes-rescission-climate-related-disclosure-rules?utm_source=openai)) the Marcellus Drilling News article does not provide direct links to these sources, making independent verification challenging.
Source reliability
Score:
4
Notes:
Marcellus Drilling News is a niche publication focusing on the oil and gas industry. Its limited reach and potential biases may affect the reliability of the information presented. The article does not provide direct links to primary sources, which raises concerns about source independence and verification.
Plausibility check
Score:
9
Notes:
The SEC’s proposal to rescind the climate disclosure rule aligns with recent actions and statements from the Commission, including the press release dated May 29, 2026. ([sec.gov](https://www.sec.gov/newsroom/press-releases/2026-49-sec-proposes-rescission-climate-related-disclosure-rules?utm_source=openai)) The claims made in the article are plausible and consistent with available information.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
While the article reports on the SEC’s recent proposal to rescind the climate disclosure rule, the reliance on a niche publication with limited reach and potential biases, coupled with the lack of direct links to primary sources, raises concerns about the reliability and verifiability of the information presented. The absence of direct citations and the challenges in independently verifying the quotes and claims made in the article further contribute to the overall assessment.