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Sparks

The SEC Climate Fight Enters a New Round

Now it’s in the courts.

The SEC building.
Heatmap Illustration/Getty Images

The legal battle over the Securities and Exchange Commission’s new rule on climate-related disclosure has begun. On Thursday, the Commission issued a pause on the rule, which sets standards for publicly-owned companies to report their exposure to climate-related risks like extreme weather or future regulations in their annual filings.

The rule finalized in early March was significantly weaker than what the Commission had originally proposed in 2022. Rather than make disclosure mandatory, the regulations say that companies only have to report certain types of information, such as their greenhouse gas emissions, if they deem the information “material.” Despite this, the decision invited swift backlash from all corners, including from the energy industry, the U.S. Chamber of Commerce, Republican states, and environmental groups.

Between March 6, the day the rules were finalized, and March 14, at least nine petitions were filed in multiple courts of appeals seeking review of the final rules. Liberty Energy Inc. and Nomad Proppant Services, two oilfield service companies, filed a motion seeking a stay pending judicial review. The petitions were later consolidated for review in the U.S. Court of Appeals for the Eighth Circuit, where the Chamber of Commerce and several other business groups also filed a motion seeking a stay. Now, the Commission has decided to accede to the request and pause the rules as the court reviews the petitions.

“In issuing a stay, the Commission is not departing from its view that the Final Rules are consistent with applicable law,” the order said. “Thus, the Commission will continue vigorously defending the Final Rules’ validity in court.”

The rules were not set to go into effect until 2026, so it remains to be seen whether or by how much the legal challenges will delay implementation. Margaret Farrell, the chair of the securities law group at the firm Hinckley Allen told the Wall Street Journal that she didn’t think the legal challenges would “fundamentally change” the direction things are heading in. “There is an obligation, which the SEC underscored a few years back, to consider the impact of climate change and climate events on the business,” she said, “regardless of the new rule.”

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Emily Pontecorvo profile image

Emily Pontecorvo

Emily is a founding staff writer at Heatmap. Previously she was a staff writer at the nonprofit climate journalism outlet Grist, where she covered all aspects of decarbonization, from clean energy to electrified buildings to carbon dioxide removal.

Sparks

Why the Vineyard Wind Blade Broke

Plus answers to other pressing questions about the offshore wind project.

A broken wind turbine.
Illustration by Simon Abranowicz

The blade that snapped off an offshore turbine at the Vineyard Wind project in Massachusetts on July 13 broke due to a manufacturing defect, according to GE Vernova, the turbine maker and installer.

During GE’s second quarter earnings call on Wednesday, CEO Scott Strazik and Vice President of Investor Relations Michael Lapides said there was no indication of a design flaw in the blade. Rather, the company has identified a “material deviation” at one of its factories in Gaspé, Canada.

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Green
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Elon Musk pledged a huge campaign donation. Also, Trump is suddenly cool with electric vehicles.

Trump’s Suspicious Pivot on EVs

Update, July 24:Elon Musk told Jordan Peterson in an interview Monday evening that “I am not donating $45 million a month to Trump,” adding that he does not belong to the former president’s “cult of personality.” Musk acknowledged, however, that helped create America PAC to promote “meritocracy and individual freedom,” and that it would support Trump while also not being “hyperpartisan.”

When former President Donald Trump addressed a crowd of non-union autoworkers in Clinton Township, Michigan, last fall, he came with a dire warning: “You’re going to lose your beautiful way of life.” President Biden’s electric vehicle transition, Trump claimed, would be “a transition to hell.”

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Sparks

Wind Is More Powerful Than J. D. Vance Seems to Think

Just one turbine can charge hundreds of cell phones.

J.D. Vance.
Heatmap Illustration/Getty Images

It’s a good thing most of us aren’t accountable for every single silly thing we’ve ever said, but most of us are not vice presidential running mates, either. Back in 2022, when J.D. Vance was still just a “New York Times bestselling author” and not yet a “junior senator from Ohio,” much less “second-in-line to a former president who will turn 80 in office if he’s reelected,” he made a climate oopsie that — now that it’s recirculating — deserves to be addressed.

If Democrats “care so much about climate change,” Vance argued during an Ohio Republican senator candidate forum during that year, “and they think climate change is caused by carbon emissions, then why is their solution to scream about it at the top of their lungs, send a bunch of our jobs to China, and then manufacture these ridiculous ugly windmills all over Ohio farms that don’t produce enough electricity to run a cell phone?”

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