Right-wing outrage as federal appeals court strikes down Biden’s harmful carbon emissions disclosure rule, protecting American job creators.

A federal appeals court has put a stop to financial regulations established by the Securities and Exchange Commission (SEC) that would require private companies to disclose their carbon emissions and how climate change could impact their business. The U.S. Court of Appeals for the Fifth Circuit temporarily halted the SEC’s climate disclosure rule that was met with pushback from energy companies, states, and business groups. The decision was made in response to concerns raised by various entities, including the Chamber of Commerce, amid growing skepticism over the legality and extent of the SEC’s climate disclosure efforts.

Under the leadership of Chairman Gary Gensler, appointed by President Biden, the SEC approved the contentious climate disclosure rules in a narrow 3-2 vote after contentious deliberations spanning nearly two years. The rules, aimed at meeting investors’ demands for consistent and reliable information about climate-related risks, have faced criticism from business groups and Republican lawmakers who argue that they could negatively impact the economy and serve as a tool to advance the Biden administration’s climate policies.

Chairman Gensler has faced scrutiny for straying from the SEC’s intended role and venturing into climate regulation territory, leading to concerns over the Commission’s overreach and potential impact on the capital markets. With the Fifth Circuit putting a hold on the SEC’s authority to implement the climate disclosure rule, doubts are growing over the future of the regulations in place. Amid lawsuits from multiple states and environmental groups challenging the SEC rules, the battle over climate disclosure continues to intensify.