Sustainability/E&S Bottom Line

The SEC Will Likely Rescind Its Climate Disclosure Rules Soon

Updated on 2 min read

Since OIRA recently noted that its currently reviewing a new rulemaking from the SEC to rescind its climate disclosure rules, we likely will see that action from the SEC soon.

Here’s a refresher of the journey of the climate disclosure rules since the SEC adopted them in March 2024:

  1. States and Private Parties Challenge the Rules: After the SEC adopted the rules, a number of law suits were filed by both states and private parties. All of the litigation was consolidated in the Eighth Circuit (Iowa v. SEC, No. 24-1522 (8th Cir.)) – and the SEC stayed effectiveness of the rules pending completion of the litigation.
  2. SEC Withdraws Defense of Climate Rules: In March 2025, the SEC announced it would stop defending its climate disclosure rules in the Eighth Circuit litigation including formally notifying the court that it would no longer advance prior arguments.
  3. No Immediate Reconsideration Planned: In July 2025, the SEC stated it didn’t intend to review or reconsider the rules – but asked the Eighth Circuit to lift the stay and proceed with evaluating the agency’s authority to adopt the rules.

    The SEC emphasized that any future reconsideration would require Commission action, and that a court ruling would help clarify the scope of the SEC’s jurisdiction and authority before taking further steps.
  4. Eighth Circuit Rejects SEC Request: Opposing parties argued the case should be paused until the SEC decided whether to repeal or defend the rules. In September 2025, the Eighth Circuit denied the SEC’s request to proceed and instead kept the case in abeyance, stating the SEC must first decide whether to rescind, modify, or defend the rules through rulemaking.

    The Eighth Circuit made clear it is the agency’s responsibility to determine the fate of the rules, noting that maintaining the stay would not materially harm petitioners.
  5. Shift Toward Rescission: The current review by OIRA suggests the SEC is moving toward formal rulemaking to rescind the climate disclosure rules, rather than defending them in court.

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Portrait photo of Broc Romanek over dark background

Broc Romanek

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