A federal appeals court has temporarily paused its consideration of legal challenges to the US Securities and Exchange Commission’s (SEC) climate disclosure regulations, pending clarification on whether the agency intends to defend, amend, or withdraw them.
The rules, introduced under former president Joe Biden, require publicly listed companies to disclose climate-related risks, greenhouse gas emissions, and associated expenditure. The measures faced immediate legal opposition from Republican-led states and an industry group.
In March, under Republican president Donald Trump, the SEC voted to cease defending the regulations. Since then, the Commission has not confirmed whether it will pursue modifications, abandon the rules entirely, or resume their defence in court.
The US Court of Appeals for the Eighth Circuit said on Friday that the cases would be “held in abeyance to promote judicial economy”. The court noted that the SEC had already delayed the rules’ implementation during the legal challenge, meaning that postponing a ruling would not cause harm.
“It is the agency’s responsibility to determine whether its Final Rules will be rescinded, repealed, modified or defended in litigation,” the order stated. The SEC told the court in July that it did not intend to revisit the rules and urged judges to proceed with the case.
