The Securities and Exchange Commission on Friday unveiled a proposal to repeal the climate‑risk disclosure rule that would have forced thousands of public firms to report material climate impacts. The rule, finalized in March 2024 under Chairman Gary Gensler, never took effect after the agency halted implementation amid lawsuits. SEC officials say the rule exceeded statutory authority and could face legal challenges.

Business groups that lobbied against the mandate welcomed the move. The U.S. Chamber of Commerce, leading a legal challenge joined by attorneys general from 25 Republican‑run states, called the rule an overreach that would deter companies from listing in the United States. U.S. Chamber of Commerce praised the rollback as protecting capital markets in the near term.

State and global trends suggest the vacuum will soon be filled. California’s Climate Corporate Data Accountability Act, already in force, obliges both public and private firms operating there to disclose greenhouse‑gas emissions, with first reports due Aug. 10. Internationally, 41 countries have adopted or proposed comparable rules covering roughly 60 % of global GDP. Climate Corporate Data Accountability Act will become the de‑facto benchmark.