SEC Proposes Repeal of Corporate Climate Disclosure Rule, Citing Excessive Costs

The Securities and Exchange Commission on May 29, 2026, proposed repealing its 2024 rule that required public companies to report greenhouse gas emissions and climate-related risks. The agency said the disclosure requirements exceed its statutory authority and impose substantial, unjustified costs on businesses and shareholders. The climate rule, finalized in March 2024 by a 3-2 Democratic majority vote, has been on hold since last year after legal challenges from business groups and Republican state attorneys general. SEC Chairman Paul Atkins, one of three Republican commissioners currently on the panel, said eliminating the rule will avoid dictating corporate behavior and ensure rules are imposed only when benefits justify burdens. Environmental advocates criticized the move, arguing it denies investors consistent information to gauge financially material climate risks. The proposal is part of the Trump administration’s broader rollback of environmental regulations. A 60-day public comment period will begin once the proposal is published in the Federal Register, expected in the coming days.