The Securities and Exchange Commission paused implementation of a climate rule requiring certain companies to disclose greenhouse gas emissions after a coalition of Republican-led states challenged the rule.
On Thursday, the SEC alerted the Eighth Circuit Court of Appeals that it would hold off finalizing the climate rule while it faced a lawsuit from 25 states led by Iowa. The states argue that the SEC has overstepped its authority by attempting to put in place the climate rule without congressional approval.
“Today’s victory shuts down the most outrageous climate mandate for businesses since Biden took office,” said Iowa Attorney General Brenna Bird. “The SEC’s job is to protect people from fraud. It has no business slapping companies with extremist climate mandates. We are making it clear that Biden has to follow the law like everyone else.”
“By halting this mandate, we are protecting business from costly red tape, securing our supply chain, and defending family farms,” she added. “Next, we are going to make this win permanent!”
In a Thursday filing, the SEC told the Eight Circuit, which is reviewing challenges to the rule, that “that the Final Rules are stayed pending completion of judicial review of the consolidated Eighth Circuit petitions.”
“In issuing a stay, the Commission is not departing from its view that the Final Rules are consistent with applicable law and within the Commission’s long-standing authority to require the disclosure of information important to investors in making investment and voting decision,” the SEC said in a court filing. “Thus, the Commission will continue vigorously defending the Final Rules’ validity in court and looks forward to expeditious resolution of the litigation.”
In addition to forcing companies to report greenhouse gas emissions, the rule would also ask businesses to report on so-called “climate risks.”
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This decision follows a move last month by the Fifth Circuit Court of Appeals to temporarily block the rule.
While a host of states filed challenges to the rule, which was proposed in, Iowa was chosen to be the lead challenger. Other states included in the challenge were Alabama, Alaska, Arkansas, Georgia, Idaho, Indiana, Kentucky, Louisiana, Mississippi, Missouri, Montana, Nebraska, New Hampshire, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, West Virginia, and Wyoming.
“Biden’s radical climate mandate is the most outrageous act of overreach we’ve seen from the Securities and Exchange Commission since Biden took office,” Bird said after Iowa was named the lead for the case. “His climate mandate will only saddle businesses with costly red tape, threaten our supply chain, and devastate Iowa family farms. Biden also illegally worked around Congress to force his climate mandate through, knowing that it lacked support from lawmakers.”