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GOP warns SEC to drop climate rule after Supreme Court ruling on EPA

Republican attorneys general are threatening legal action against the Securities and Exchange Commission over its proposed rule for climate-related disclosures on the grounds that it contravenes the Supreme Court’s recent ruling in West Virginia v. EPA.

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They added, “Environmental regulation is outside the Commission’s area of expertise; if anything, the Commission is even less suited to regulate in areas touching climate change than EPA,” to their criticism of the SEC’s “paternalistic” view of its legislative jurisdiction on disclosures.

According to the SEC’s proposed regulation, which was initially presented on March 21, publicly traded firms would be required to report a range of climate change-related risks, including the greenhouse gas emissions generated by their operational footprints.

Republicans and numerous business organizations, notably the oil and gas industry, are against the regulation because they believe that the commission does not have the jurisdiction to require such reports. Additionally, they claim that the policy is already deterring investment in fossil fuels at a time when more investment is needed to boost supply and lower prices.

Democrats and environmental organizations who want to more aggressively combat climate change by cutting investments in fossil fuels broadly support the SEC’s approach, and some want the agency to be even more forceful than its proposed rule.

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SEC Gary Gensler, the chairman of the commission, defended the proposed regulation against criticism, claiming that it is consistent with the commission’s past disclosure practices and will help investors be better informed.

Examiner in Washington SEC, Finance, Investment, Law, Supreme Court, and videos

Author at first: Jeremy Beaman

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Original Place: After the Supreme Court’s EPA decision, the GOP cautions the SEC to abandon its climate rule.

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