Republican Senators Claim SEC Lacks Authority to Finalize Climate Emissions Disclosure Rule

In a letter to SEC Chair Gary Gensler, U.S. Senators Kevin Cramer (R-ND) and Shelley Moore Capito (R-WV) asserted that the SEC lacks the authority to finalize a rule requiring companies to disclose their greenhouse gas emissions and other disclosures to the public.

The Senators argued that the proposed rule on climate-related disclosures would, if adopted, "hinder[] domestic energy producers’ access to capital and fuels even higher energy prices." They argued that the proposed rule would also " fail the materiality test and counteract capital formation." As a result, they claimed that, "the significant costs alone may keep companies from going public or cause public companies to go private, depriving investment opportunities in public markets."

Further, the Senators reminded the SEC Chair that the "Environmental Protection Agency is the federal agency charged with air emissions reporting and regulation."

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