A measure has been passed by a House panel, with the support drawn largely along partisan lines, to stop the U.S. Securities and Exchange Commission (SEC) from progressing its climate disclosure rule initiated in March. The bill, which cleared the committee, represents another dimension in the political clash over climate change regulation and its implications within the finance sector.
The House Financial Services Committee cast a 28-22 vote in favor of the resolution to be passed onto the full house. This measure proposes to exploit the Congressional Review Act, effectively preventing the SEC from implementing its March 6 rules. The aforementioned regulations demand firms disclose their greenhouse gas emissions and the risks they could face as a result of climate change to investors.
As reported by Bloomberg Law, the move to block the SEC’s climate rule was indicated from the day the SEC approved the rules by Republican committee members, led by Michigan Representative Bill Huizenga. This move serves to thwart the SEC’s efforts to enhance transparency around how publicly traded companies are adjusting to climate change impacts and places potential roadblocks in efforts towards corporate environmental accountability.
It is yet to be determined whether the full House will pass this resolution and if so, what implications will arise from the decision. Legal professionals and corporations alike will be watching these developments closely in the face of globally heightened climate change concerns.