The U.S. Securities and Exchange Commission proposed rescinding its climate disclosure rules in full, citing concerns about legal authority and compliance costs. The agency said on May 29 that it wants to rescind rules on climate-related information in registration statements and annual reports.
The SEC proposal targets amendments adopted in March 2024 under two major securities laws. Those laws are the Securities Act of 1933 and the Securities Exchange Act of 1934.
The 2024 rule required some public companies to disclose climate-related risks and greenhouse gas emissions information. The rule faced lawsuits soon after adoption and received a court stay in April 2024. AP reported that the rule never took effect.
The Wall Street Journal reported that the SEC stopped defending the rule in court after President Donald Trump’s administration changed the agency’s leadership.
SEC Chair Paul Atkins has argued that disclosures should stay tied to material financial information for investors.
The SEC said the proposal will go through a 60-day public comment period. The Federal Register notice appeared on June 3, 2026. The proposal followed an earlier notice to the Office of Management and Budget in May.
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The Financial Times reported that companies may still need to disclose climate risks if those risks affect operations or financial results. Regional rules may also continue to apply.
The Financial Times reported that companies with operations in California or the European Union may still face climate disclosure requirements. The SEC proposal now moves through public comment before the commission decides whether to finalise the rescission.
