On May 29, 2026, the U.S. Securities and Exchange Commission issued a proposal to rescind, in its entirety, the climate disclosure rules it adopted in March 2024.^[1] While the Commission’s proposal contemplates complete rescission of the climate disclosure rules, it also solicits comment on potential alternatives short of full rescission.

The SEC’s principal argument for rescission is that the climate disclosure rules exceeded the scope of the Commission’s statutory authority under the Securities Act of 1933 and the Securities Exchange Act of 1934. The proposal further posits that, even if a court were to find that the Commission had such authority, several independent policy considerations nevertheless warrant rescission. The proposal contends that:

• The climate disclosure rules are unnecessary and inconsistent with a registrant-specific, materiality-based approach to disclosure. The proposal says that “existing disclosure requirements and anti-fraud provisions already elicit information about the effects of climate-related matters in a way that is tailored to reflect registrants’ particular circumstances,” and it points to the Commission’s 2010 interpretive guidance enumerating relevant existing disclosure obligations.
• The climate disclosure rules stray well beyond the policy concerns of the Federal securities laws.
• The climate disclosure rules impose substantial costs on public companies that are not justified by the informational benefits they may provide to some investors.
• The high implementation costs of the climate disclosure rules are at odds with the Commission’s policy objectives of facilitating capital formation and promoting public company status. 

The proposal will be subject to public comment for 60 days following publication in the Federal Register.

^[1] The Enhancement and Standardization of Climate-Related Disclosures for Investors, Release No. 33-11275 (Mar. 6, 2024) [89 FR 21668 (Mar. 28, 2024)].