The Securities and Exchange Commission (“SEC”) has signaled it plans to formally rescind the Biden-era climate-related disclosure rules (The Enhancement and Standardization of Climate-Related Disclosures for Investors). Per the White House’s Office of Information and Regulatory Affairs (OIRA) dashboard, the SEC submitted a proposed rulemaking on May 5, 2026, titled Rescission of Climate-Related Disclosure Rules. OIRA review is required before the SEC can formally publish its rulemaking.
The SEC adopted final rules mandating climate-related disclosure back in March 2024. The rules were quickly challenged, with litigation consolidated in the U.S. Court of Appeals for the Eighth Circuit. Following the change in presidential administration, the SEC announced in March 2025 that it had voted to discontinue its defense of the rules and a few months later indicated in a status update that the agency did not intend to review or reconsider the rules. However, the SEC asked the Eighth Circuit to lift the stay on the litigation so that arguments regarding the scope of the agency’s power to adopt such requirements could continue. Intervenors argued that the case should be held in abeyance until the SEC decided to repeal or proceed with the rules. In a September 2025 order, the Eighth Circuit agreed, directing the SEC to determine whether the rules would be rescinded, repealed, modified, or defended. The May 2026 submission of the SEC’s proposed rulemaking on the rescission of the climate disclosure rules signals the agency’s intended course of action.
Both public and private companies should continue to monitor developments, especially once the SEC’s rescission proposal is formally published following OIRA review. Note, however, that while the SEC’s proposed rescission will likely mark the final nail in the coffin of the SEC climate rule under this administration, state-level climate reporting laws with significant extraterritorial reach — such as California’s — press on. As previously described, California’s climate reporting laws are also being challenged, this time in the Ninth Circuit, and companies should therefore closely monitor the scope and timing of developments on the state law front as well as any SEC follow-on rulemaking as it relates to federal climate rules.
