Current and former state attorneys general are praising the Trump administration’s U.S. Securities and Exchange Commission (SEC) for its decision to roll back a Biden-era climate rule requiring companies to disclose their carbon emissions. West Virginia Governor Patrick Morrisey expressed his satisfaction with the move, highlighting his concerns about the legality of the SEC’s actions and the potential burdens on public companies. Morrisey led a coalition of over a dozen states in challenging the climate rule last year, indicating a widespread opposition to the regulation.
The SEC acting chairman, Mark Uyeda, under President Donald Trump’s directive to freeze certain federal regulations, announced the delay of a court hearing on the climate rule. Uyeda criticized the rule, calling it “deeply flawed” and potentially harmful to the economy. This decision comes amid a shift in the SEC’s leadership and a broader effort to reassess regulatory priorities. However, Commissioner Caroline A. Crenshaw expressed dissent regarding the delay, emphasizing the importance of acting within constitutional and statutory boundaries.
Under former Chairman Gary Gensler, the climate rule mandated publicly traded companies to disclose detailed information on climate-related risks, emissions, and financial impacts of climate change. The move to roll back this rule has been met with approval from several attorneys general, who view it as a return to “common sense” governance that will alleviate financial burdens on companies. Georgia Attorney General Chris Carr emphasized the potential job and investment losses that could have resulted from the rule, highlighting the importance of a balanced regulatory approach.
Expert Insights on the Rollback
Indiana Attorney General Todd Rokita, a co-signer on the lawsuit challenging the climate rule, welcomed the decision as a sign of common sense prevailing in the nation. He stressed the importance of the SEC focusing on investor protection and financial market stability rather than advancing environmental agendas. The actions taken by the Trump administration to reverse international climate commitments and promote traditional energy sources signal a broader shift in regulatory priorities.
Morrisey and Carr anticipate further actions against the climate change agenda under the current administration, citing recent executive orders that prioritize American potential and innovation over ideological agendas. The administration’s commitment to dismantling regulatory constraints is seen as a positive step towards unleashing the country’s economic potential. White House spokesman Kush Desai reaffirmed the administration’s focus on merit, competence, and innovation, signaling a departure from previous environmental and social activism in regulatory decisions.
As the debate over climate regulations continues to evolve, the rollback of the SEC’s climate rule marks a significant shift in regulatory priorities. The move has been met with both praise and criticism, reflecting the broader divisions in the political landscape regarding environmental policies and corporate disclosures. The implications of this decision are likely to reverberate across industries and regulatory agencies, shaping the future of climate governance in the United States.
