Carbon MarketsSEC Proposed Rule on Carbon Emissions Disclosure

SEC Proposed Rule on Carbon Emissions Disclosure

The U.S. Securities and Exchange Commission (SEC) is proposing that all public companies report their carbon emissions.

In general, it will increase the reporting transparency of public corporations. It will help investors know more about how climate risks affect their investments.

What to know about the new rule?

One major mandate is that companies disclose both their Scope 1 and Scope 2 emissions. The same goes for their Scope 3 emissions, if “material”.

Some firms have announced their carbon footprint reduction pledges already. The SEC will mandate them to share how they would achieve such commitments. If corporations set their own carbon price, the SEC will demand them to report about it.

Climate activists are vigilant on carbon offsets strategy for reducing carbon emissions.

How would this impact public companies?

Most companies are already disclosing their carbon emissions in their annual sustainability reports. But significant discrepancies remain.

The former SEC chair Schapiro noted that there are still many big companies that won’t do it unless it’s mandatory. The present SEC chair said that both companies and investors would value the new law.

Companies will need help from climate tech experts for their climate risk reports. This is good news for carbon accounting due to increased carbon emissions reporting.

How important is the disclosed information?

According to SEC, it is the investors that pushed them to draft the rule. They demand better and more transparent climate risk information disclosure. This is because climate change disasters impact the environment.

Likewise, climate risks are also becoming essential for investors to make informed decisions. The information will also show which companies commit to reducing their carbon footprint. The public and investors can put pressure on businesses that are true to their words, not actions.

This rule will make the SEC the leading enforcer of climate-related financial disclosures. The draft proposal will be more likely finalized before this year ends.

For a full overview of the proposed changes Click Here.

 

 



Most Popular



Ultimate Guide



Loading...



LATEST CARBON NEWS

How AI and Clean Energy Are Competing for Critical Minerals?

The world is rapidly shifting to clean energy, and this is changing how we power our lives. Technologies like solar panels, wind turbines, and...

Paladin Energy Hits Record Uranium Output Since Restart at Langer Heinrich

Paladin Energy saw a 17% jump in uranium production in the March 2025 quarter, which sent its stock price up. The company produced 745,484...

China Sets Clean Energy Record in Early 2025 with 951 TW

China made big progress in clean energy during the first three months of 2025. The country produced 951 terawatt hours (TWh) of clean electricity...

U.S. Slaps 3,521% Tariffs on Solar Imports—SolarBank CEO Shares Growth Strategy

The U.S. government has imposed steep tariffs on solar panels and cells imported from four Southeast Asian countries: Cambodia, Vietnam, Malaysia, and Thailand. These...
CARBON INVESTOR EDUCATION

Planting Trees for Carbon Credits: Everything You Need to Know

As climate change intensifies, nations and industries are seeking innovative ways to cut carbon footprints. Carbon credits have emerged as a key tool in...

What is SMR? The Ultimate Guide to Small Modular Reactors

Energy is the cornerstone of modern life. We need electricity for healthcare, transportation, communication, and more. Many countries are choosing nuclear power because it...

What Is Carbon Dioxide Removal? Top Buyers and Sellers of CDR Credits in 2024

The world must remove 5–16 billion metric tons of CO₂ annually by 2050 to limit global warming to 1.5°C. But with emissions still rising,...

Top 5 Carbon ETFs for Sustainable Investing in 2025

Like stocks, investors can buy and sell Exchange-Traded Funds (ETFs) whenever the market is open. Often investing in carbon credits through ETFs offers a...