The U.S. Securities and Exchange Commission (SEC) is beginning the process of rescinding the climate disclosure rules introduced by the Commission during the Biden administration, according to a filing submitted to the U.S. Office of Management and Budget, and confirmed by an SEC spokesperson in a statement provided to ESG Today. In the statement, the spokesperson […]
Back to Climate News
esgtoday.com
SEC Moves to Repeal Climate Reporting Rules - ESG Today
Abatify Summary
Nature & Climate Perspective
**The rescission of mandatory climate disclosures limits the data granularity required to accurately value nature-based sequestration and biodiversity co-benefits within corporate supply chains. **
- Reduced reporting requirements for Scope 3 emissions obscure the indirect impacts of corporate activities on LULUCF (Land Use, Land-Use Change, and Forestry) sectors.
- The lack of standardized carbon footprint data weakens the market signal for high-integrity carbon removal projects, potentially slowing the transition to regenerative land management.
- Long-term environmental stability is threatened as the removal of regulatory pressure reduces corporate incentives to fund ecosystem restoration as a hedge against climate risk.
Market & Policy Outlook
**The SEC's move to repeal climate reporting creates a significant divergence from the ICVCM Core Carbon Principles (CCPs), particularly regarding the transparency and high-integrity data necessary for robust climate markets. **
- Policy fragmentation between the U.S. and jurisdictions like the EU (CSRD) creates regulatory arbitrage, complicating global SBTi (Science Based Targets initiative) alignment for multinational entities.
- Market pricing and financial liquidity for carbon assets may experience increased volatility as institutional investors lose a standardized framework for assessing climate-related financial risk.
- The shift back to voluntary reporting diminishes the utility of ITMOs and Article 6 frameworks by reducing the baseline data quality needed for national-level climate accounting.
This story moves you. Here's what you can do.
Related Resources
Sourcing:
Contact our trading desk for customized environmental commodities for your needs
Request sourcing: ICVCM / CCP-Labeled Credits