SEC’s Rollback of Biden-Era Climate Rule: A Win for Common Sense

Exclusive Report: Current and former state attorneys general are commending the Trump administration’s decision to roll back a controversial U.S. Securities and Exchange Commission (SEC) rule that mandated companies disclose their carbon emissions. This decision has been characterized as a return to “common sense” governance amid significant debate over climate policy.

Response from Attorneys General

“We’ve led multiple common letters over the years against this radical Biden climate fiasco,” said West Virginia Governor Patrick Morrisey in an interview with Fox News Digital. “We’ve always had deep concerns about the legality of what the SEC was trying to do and the burdens that it would impose on public companies.” Morrisey praised the rollback as a victory for the rule of law and a stand against federal overreach, asserting that it reflects a commitment to sensible leadership.

Morrisey previously spearheaded a coalition of over a dozen states—including Iowa, Georgia, Alabama, and Alaska—in a legal challenge against the climate rule, which came under scrutiny following its implementation in March 2024. The rapid response included over nine legal petitions within just 10 days, showcasing a strong opposition from various stakeholders, including corporations like Liberty Energy and Nomad Proppant Services.

Liberty Energy, founded by Chris Wright, a former Secretary of Energy under President Trump, was among the notable challengers in this legal battle.

SEC’s Acting Chairman Responds to Controversy

Mark Uyeda, SEC’s acting chairman, remarked that the now-defunct climate rule, referred to as the Enhancement and Standardization of Climate-Related Disclosures for Investors, “was deeply flawed and could inflict significant harm on the capital markets and our economy.” He stressed that the proposed regulations had overstepped the SEC’s authority, and recent leadership changes have necessitated a reevaluation of the agency’s position in ongoing legal proceedings.

In an email to the court, Uyeda requested a delay in the case involving the climate rule, signaling significant shifts in agency direction and priorities under the new administration. However, this move sparked dissent from fellow SEC commissioner Caroline A. Crenshaw, who criticized the decision as lacking proper collaboration within the full commission. Crenshaw maintained that while agencies must remain within constitutional boundaries, the SEC had not acted outside its legal remit.

Why the Rule Was Controversial

Under previous chairman Gary Gensler, who was appointed by former President Joe Biden in 2021, the climate rule had mandated that publicly traded companies disclose detailed information concerning climate-related risks, including greenhouse gas emissions and potential financial impacts from climate change. This requirement was perceived by some state officials and business leaders as overly burdensome, potentially hindering investment and innovation.

Attorneys general involved in the coalition lawsuit hailed the rollback as a critical victory for traditional business practices and economic growth. Georgia Attorney General Chris Carr emphasized that compliance costs could have resulted in lost employment opportunities and investments, asserting that it was vital for federal policies to reflect economic realities rather than regulatory ideologies.

A Broader Context: The Return to Traditional Energy Policies

Indiana Attorney General Todd Rokita echoed these sentiments, describing Uyeda’s initiative as a crucial sign of reason returning to federal policy. He noted that taxpayers expect the SEC to prioritize investor protection and the integrity of financial markets, rather than aligning itself with extreme environmental agendas.

Both Morrisey and Carr predict that the current administration will further dismantle regulations targeting climate change, similar to recent executive orders suspending prior international climate commitments and endorsing traditional energy sources. This includes a withdrawal from the Paris Agreement, signaling a substantial policy shift regarding environmental protection.

White House Commentary on Policy Direction

In response to inquiries about the SEC’s new direction, White House spokesman Kush Desai affirmed that President Trump prioritizes dismantling what he described as ideological “chokeholds” over American institutions and businesses. “The Trump administration will continue to prioritize merit, competence, and innovation over ESG and DEI activism,” Desai stated, reinforcing the message that the administration aims to favor economic growth and job creation over stringent environmental mandates.

The Road Ahead

As debates on climate policy continue, the rollback of the climate disclosure rule marks a significant pivot in U.S. regulatory approach, mirroring broader national conversations about the role of government, the economy, and environmental responsibility. The response from leading attorneys general indicates a wider discontent with aggressive climate policies, suggesting further legal and political battles are likely in the future as the administration navigates its deregulatory agenda.

As stakeholders monitor the developments, the balance between economic interests and environmental responsibilities remains a topic of intense scrutiny, positioning state officials and business leaders at the forefront of a renewed discourse on common-sense regulations.