{"id":9827,"date":"2025-11-19T10:57:07","date_gmt":"2025-11-19T15:57:07","guid":{"rendered":"https:\/\/sdgnews.com\/?p=9827"},"modified":"2025-11-19T10:57:09","modified_gmt":"2025-11-19T15:57:09","slug":"california-climate-disclosure-law-sb261-injunction","status":"publish","type":"post","link":"https:\/\/sdgnews.com\/fr\/california-climate-disclosure-law-sb261-injunction\/","title":{"rendered":"California Climate Disclosure Law Partially Halted as Court Pauses SB 261 Enforcement"},"content":{"rendered":"

The Ninth Circuit halts California climate disclosure law SB 261 pending appeal, creating uncertainty for companies as SB 253 emissions reporting rules continue.<\/em><\/p>\n\n\n\n

A sudden federal court intervention has thrown California\u2019s landmark climate disclosure regime into uncertainty, after the U.S. Court of Appeals for the Ninth Circuit moved to pause implementation of Senate Bill 261 just weeks before companies were expected to begin preparing mandatory climate-risk disclosures. The one-page order, issued on November 18, halts enforcement of the state\u2019s climate-related financial risk law pending appeal, marking a significant development in what could become one of the most consequential legal battles over climate accountability in the United States.<\/p>\n\n\n\n

The injunction arrives as California had been positioning itself as the de facto national standard-setter for climate transparency. SB 261 was scheduled to require any business entity operating in California with over 500 million dollars in annual revenue to publicly disclose climate-related financial risks and mitigation strategies. Now, companies face an unexpected pause\u2014while the state\u2019s second major climate disclosure law, SB 253, remains fully on track.<\/p>\n\n\n\n

A major climate law halted while its companion pushes ahead<\/h3>\n\n\n\n

The Ninth Circuit\u2019s order creates a split in enforcement between two interconnected pillars of California\u2019s Climate Accountability Package, signed into law in October 2023 by Governor Gavin Newsom. While SB 261\u2014the Climate-Related Financial Risk Act\u2014is paused, SB 253, the Climate Corporate Data Accountability Act, will proceed as planned.<\/p>\n\n\n\n

Under SB 253, companies with over 1 billion dollars in annual revenue<\/strong> must begin publicly reporting their greenhouse gas emissions:
\u2022 Scope 1 and 2 emissions by June 30, 2026<\/strong>
\u2022 Scope 3 emissions beginning in 2027<\/strong><\/p>\n\n\n\n

The partial injunction leaves California\u2019s regulatory landscape split. More than 3,100 companies were identified in a preliminary list issued by the California Air Resources Board (CARB) in September as potentially subject to one or both laws. CARB noted at the time that the list was incomplete, and companies would need to comply whether or not they appeared on it.<\/p>\n\n\n\n

The court offered no explanation for its decision. The simplicity of the one-page order belies its consequences: companies now face a fragmented compliance landscape, regulators must adjust timelines, and legal uncertainty around California\u2019s authority to impose climate disclosure obligations remains unresolved.<\/p>\n\n\n\n

Business groups seize on a major opening<\/h3>\n\n\n\n

The injunction marks a temporary victory for the U.S. Chamber of Commerce, the lead petitioner challenging both SB 261 and SB 253. Joined by several influential business associations\u2014including the California Chamber of Commerce, American Farm Bureau Federation, Los Angeles County Business Federation, Central Valley Business Federation, and Western Growers Association\u2014the Chamber has argued the laws impose \u201cnationwide burdens\u201d and violate constitutional protections, including the First Amendment.<\/p>\n\n\n\n

In a statement following the ruling, Daryl Joseffer, executive vice president and chief counsel at the Chamber\u2019s Litigation Center<\/strong>, praised the decision:<\/p>\n\n\n\n

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\u201cThe U.S. Chamber welcomes the Ninth Circuit\u2019s decision to pause California\u2019s unconstitutional climate disclosure law, pending appeal. Stopping this law before its January 1 deadline was critical to businesses and the protection of their First Amendment rights. One state should not have the ability to impose this kind of burden on the entire country.\u201d<\/em><\/p>\n<\/blockquote>\n\n\n\n

The Chamber has been vocal about the cost implications, citing \u201cmassive compliance costs for companies and their supply chains.\u201d<\/em><\/p>\n\n\n\n

The Ninth Circuit\u2019s initial stance in the case was different: it had denied an earlier request for a preliminary injunction and planned to hear the full appeal next year. The Chamber then filed an emergency application with the U.S. Supreme Court on November 15, seeking immediate relief. The Ninth Circuit\u2019s new intervention came days later, pausing SB 261 but not the broader emissions disclosure requirements under SB 253.<\/p>\n\n\n\n