Senators launch offensive to overturn SEC’s climate change rule

Sen. Tim Scott is leading an effort to overturn the Securities and Exchange Commission’s climate disclosure rule, and he’s picked up support from Democrat Sen. Joe Manchin III.

Mr. Scott, the top Republican on the Senate Banking Committee, targeted the SEC’s climate rule with a Congressional Review Act resolution that allows Congress to reverse rules issued by federal agencies.

“The SEC’s final climate disclosure rule threatens economic opportunity across the country, and it must be overturned,” Mr. Scott said. “Over and over again, SEC Chair Gary Gensler has disregarded the real-world impacts of his aggressive regulatory agenda in his dogged pursuit of left-wing political priorities. This rule is no exception.”

The rule, which the SEC finalized last month in a 3-2 vote, requires large and mid-sized companies to disclose to investors the “climate risks” associated with their operations, such as greenhouse gas emissions.

The rule also requires companies to disclose any information about plans to transition to a low-carbon economy.

Enforcement of the rule was paused earlier this month because of court challenges.

Mr. Scott of South Carolina the SEC had veered far from its prescribed course to placate climate change activists.

“The SEC’s mission is to regulate our capital markets and ensure all Americans can safely share in their economic success – not to force a partisan climate agenda on American businesses. This rule is federal overreach at its worst, and the SEC should stay in its lane,” he said.

The resolution has 34 co-sponsors including Mr. Manchin of West Virginia. To pass the Senate, it needs at least one more Democratic vote if all 49 Senate Republicans support it. The resolution would have an easier time clearing the GOP-led House.

If it reaches President Biden’s desk, he’ll likely veto it.

The resolution’s sponsors argue that the rule buries companies in paperwork, which would affect consumers and the economy.

Mr. Manchin said the rule “completely contradicts its long-standing commitment to protect investors and promote a fair and efficient U.S. financial market.”

“This deliberate targeting of fossil fuel companies not only threatens our economic security, but also sends a strong signal of opposition to the all-of-the-above energy policy that is absolutely critical to our country and our allies right now,” he said.

Climate change activists have strongly backed the SEC’s move, and some argued the rule didn’t go far enough to protect the environment.

“Climate risk is financial risk. This is a sensible rule to protect investors,” Elizabeth Derbes of the Natural Resources Defense Council, said when the rule was finalized in March. “What’s wrong with this rule is that it needs to do much more.”