In yet another example of the United States' federal pull back on climate change disclosure laws, the Federal Acquisition Regulatory Council on Monday withdrew a proposed rule titled “Disclosure of Greenhouse Gas Emissions and Climate-Related Financial Risk,” which would have amended the Federal Acquisition Regulation (FAR) to require major federal suppliers to publicly disclose greenhouse gas emissions and climate-related financial risk and to set science-based reduction targets.

The proposed rule was published on November 14, 2022. In withdrawing it, the council explained that the agencies lacked sufficient time during the Biden administration to finalize the proposal. In addition, the agencies' analysis of public comments indicates evolving practices and standards in industry and an evolving domestic and international regulatory landscape. 

As we previously reported, the Securities and Exchange Commission stayed its climate-related disclosure rule last April pending judicial resolution of consolidated challenges to the rule in the U.S. Court of Appeals for the Eighth Circuit. While this litigation is ongoing, many expect that the rule is unlikely to survive given the upcoming change in presidential administration.

Meanwhile, certain states are going in the opposite direction. California’s climate disclosure laws (SB 253 and SB 261, as amended by SB 219) continue in effect (subject to the ongoing litigation in the U.S. District Court for the Central District of California), with reporting to begin in 2026. As we previously reported, the California Air Resources Board is currently soliciting feedback that will inform the implementation of these climate disclosure laws. Comments are due by February 14, 2025. New York, Washington, and Illinois are all considering climate disclosure rules similar to California.