Former and current state attorneys general are applauding the Trump administration's decision to overturn a Biden-era SEC rule that mandated climate-related disclosures from public companies. The move is being hailed as a victory for common sense and a pushback against federal overreach.
West Virginia Governor Patrick Morrisey, who spearheaded a multi-state lawsuit against the rule during his tenure as attorney general, celebrated the decision as a win for the rule of law. He criticized the Biden administration's climate agenda and praised the current leadership for taking action against what he considers excessive regulatory burdens on businesses.
The rescinded rule, known as the Enhancement and Standardization of Climate-Related Disclosures for Investors, required companies to report their greenhouse gas emissions and assess the financial risks associated with climate change. The rule faced immediate legal challenges upon its implementation in March 2024, including a lawsuit led by Morrisey and joined by states like Iowa, Georgia, Alabama, and Alaska.
Acting SEC Chairman Mark Uyeda, appointed under the Trump administration, deemed the rule flawed and potentially harmful to the economy and capital markets. He stated that the rule exceeded the SEC's authority and directed the agency to request a delay in ongoing litigation while the rule is reconsidered. However, SEC Commissioner Caroline A. Crenshaw dissented, arguing that the chairman acted unilaterally and that the rule was within the SEC's purview.
Several attorneys general who participated in the lawsuit against the rule echoed Morrisey's sentiments. Georgia Attorney General Chris Carr emphasized the potential financial burdens and missed opportunities the rule would have imposed on companies. Indiana Attorney General Todd Rokita welcomed the rollback as a return to common sense and a shift away from what he termed "radical environmentalism."
The reversal of the climate rule aligns with other recent executive orders by President Trump promoting traditional energy sources and rolling back international climate commitments, including withdrawing from the Paris Agreement. A White House spokesperson affirmed the administration's commitment to prioritizing merit and innovation over ESG and DEI activism.
