A federal court on Friday stopped a new federal rule that would make it necessary for publicly traded companies to disclose information related to climate change.
A group of judges in the Fifth Circuit Court of Appeals issued a decision to temporarily stop the rule while legal action against it continues.
The decision, made by Judges Edith Jones, Stephen Higginson, and Cory Wilson — selected by former Presidents Reagan, Obama and Trump respectively — did not explain the reasons for the temporary stop.
This happened after fracking companies Liberty Energy and Nomad Proppant Services filed a lawsuit against the rule. They requested the court to temporarily stop the rule, arguing that they are likely to ultimately win the case and in the meantime, would have to deal with compliance costs.
The temporary stop does not necessarily mean that their case will ultimately be successful or that the rule will be overturned — but, it indicates that the judges are at least somewhat open to considering the arguments against it.
The rule in question is from the Securities and Exchange Commission (SEC), requiring companies to disclose what risks, if any, the changing climate presents for their business.
It also mandates that some large and mid-sized companies disclose the direct carbon dioxide emissions and the emissions resulting from their energy use.
The SEC opposed the temporary stop in court filings, stating that the companies failed to show that they would face immediate and irreversible harm.
“Liberty Energy—the only company seeking relief that is publicly traded—already publicly reveals certain climate-related risks,” said SEC Counsel John Rady in a court document.
