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Ninth Circuit Halts California Climate Risk Rule, Keeps Emissions Reporting Intact

The split ruling follows business groups’ First Amendment challenge now also before the Supreme Court.

Overview

  • A three-judge panel paused California’s biennial climate-related financial risk disclosure set to start in January but let the separate annual greenhouse-gas emissions reporting requirement proceed.
  • The U.S. Chamber of Commerce, which sought the pause, said it will continue pressing for an injunction against both laws on free-speech grounds.
  • California’s Air Resources Board said it is reviewing the decision, and the state has argued the measures regulate commercial speech that receives reduced constitutional protection.
  • The risk-disclosure mandate applies to companies with at least $500 million in annual revenue and would cover more than 4,100 businesses, while the emissions reporting rule applies at $1 billion and reaches roughly 2,600 companies.
  • The Chamber filed an emergency petition with the Supreme Court on Nov. 10 and a brief from Iowa and 24 other states supports it, as Ninth Circuit arguments are set for Jan. 9, 2026 and ExxonMobil’s separate federal lawsuit in Sacramento remains pending.