The Trump administration is set to scrap a Biden-era SEC rule requiring companies to report emissions data and climate-related business risks. The regulation, which consumed significant regulatory resources, faced fierce opposition from business groups concerned about compliance burdens and materiality standards. The move represents another reversal of climate-focused financial regulations.

The proposed rule reversal follows an extensive comment period that drew 4,500 responses to the SEC's 2022 draft, far exceeding the 600 letters received during the initial proposal. The U.S. Chamber of Commerce submitted a 141-page argument against the regulation, warning it would deter companies from going public. Technical glitches further complicated the rollout.

Climate disclosure requirements have evolved over 15 years, with advocates like Mindy Lubber of Ceres pushing for investor-focused climate risk reporting since the mid-2000s. The SEC's 2021 decision to strengthen guidance initiated what became a procedural brawl, now ending with the rule's likely abandonment before ever taking effect.