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Appeals Court Pauses California Climate‑Risk Disclosure Law, Leaves Emissions Reporting in Effect

The Ninth Circuit issued a limited stay on the risk‑reporting mandate pending a First Amendment challenge.

Overview

  • Judges on the 9th U.S. Circuit Court of Appeals halted California’s requirement that large companies file biennial reports on climate‑related financial risks set to begin in January.
  • The court allowed a separate state law requiring major companies to disclose their greenhouse gas emissions to remain in force for now.
  • The U.S. Chamber of Commerce, which argues the mandates unconstitutionally compel speech, sought the pause at the Ninth Circuit and has also requested emergency relief from the U.S. Supreme Court.
  • Iowa and 24 other states filed a brief supporting the Chamber’s Supreme Court petition, saying California is using its market heft to export climate rules nationwide.
  • California air regulators said they are reviewing the ruling, as related litigation continues in the Ninth Circuit and in a separate ExxonMobil lawsuit in federal court in Sacramento.