Climate Chaos! US Scraps Key Business Disclosure Rule, Canada’s Green Ambitions Crumble

Washington D.C. / Ottawa – A seismic shift in climate change legislation is rocking the business world and political capitals across North America. From the halls of the US Securities and Exchange Commission (SEC) to the Canadian Parliament, controversial decisions are sparking outrage and impacting corporate strategy.

The most shocking development comes from the United States. The acting chair of the U.S. Securities and Exchange Commission (SEC), Mark Uyeda, has signaled a stunning rollback. The SEC is abandoning a rule requiring public companies to disclose their climate-related business risks. This rule, a cornerstone of transparency for climate advocates, faces strong opposition.

SEC Abandons Climate Disclosure Mandate

This controversial move reverses a key initiative from former SEC chair Gary Gensler. Business groups and Republican state attorneys general had fiercely fought the mandate. Critics argue it was too burdensome for companies.

However, this decision is drawing immediate fire. SEC Commissioner Caroline Crenshaw and climate advocates see it as undermining vital investor protections. Investors need this information to make informed decisions. The rule aimed to provide clarity on financial exposure to climate risk.

Despite the federal rollback, global trends persist. A recent Workiva survey reveals 85% of global business leaders still plan climate risk disclosures. This is driven by European regulations and US state-level requirements. The debate rages: will a lack of federal guidance create market uncertainty?

House Republicans Attack Clean Air Act

Across Capitol Hill, US House Republicans are pushing their own agenda. The House Energy and Commerce Committee just approved seven bills. These bills aim to significantly reshape the Clean Air Act.

Republicans claim these changes will "unleash American energy" and foster economic growth. However, Democrats are branding the package as "dirty, dirty, dirty." Representative Kathy Castor (D-Fla.) called it a "polluter fast pass". This legislative push signals a direct challenge to environmental protections. It prioritizes business interests over public health concerns.

Colorado Battles Over Data Center Emissions

On a state level, Colorado is witnessing a fierce legislative battle. Lawmakers are divided over regulating the booming data center industry. One proposed bill offers a 20-year break on sales and use taxes to attract these companies. Proponents argue this will bring jobs and tax revenue.

Conversely, another group of lawmakers demands data centers offset their energy use with renewables. They also want companies to pay for necessary infrastructure upgrades. This bill seeks to prevent energy-hungry hubs from derailing state emissions goals. It aims to protect water supplies and prevent increased energy costs for consumers. The industry warns such regulations are "punitive" and could drive businesses away.

Canada's Climate Dreams Shattered?

Meanwhile, Canada’s climate ambitions are facing significant headwinds. The country's climate policy implementation falls far short of its stated targets. Canada's rating has worsened to "Highly Insufficient". Emissions projections are now higher than previous estimates.

A major blow came in December 2025. Prime Minister Mark Carney signed a controversial deal with Alberta. This agreement will reportedly roll back or dilute green regulations. The decision sent shockwaves through the government.

• Ministerial Resignation: Steven Guilbeault, the former Environment Minister under Justin Trudeau, resigned from Carney's cabinet. Guilbeault stated the Alberta deal was "the last straw". He believes Canada now has "no way" to meet its climate goals.

• Carbon Price Removed: Adding to the woes, Canada removed its consumer carbon price in April 2025. Some industrial facilities can now opt out of carbon pricing entirely. These actions significantly weaken Canada's carbon reduction efforts.

"The only chance we had of coming close to meeting our targets was if we continued full speed ahead," Guilbeault stated. "And now we're sacrificing major elements of that plan."

Businesses Brace for Extreme Weather Impacts

Beyond policy debates, Canadian businesses are already feeling climate change's direct financial sting. A KPMG in Canada survey reveals 92% of business leaders fear extreme weather is the new normal. They expect climate-related events to hit their organizations this year.

• Profitability Plunges: Last year, 56% of Canadian companies reported a hit to their profitability due to extreme weather.

• Costs Skyrocket: 49% saw significantly increased costs from productivity loss, broken supply chains, and rising insurance.

"The extreme weather events of the last couple of years have driven home the cost of climate change to the Canadian economy," said Roopa Davé, KPMG in Canada's National Climate Risk Leader. She added, "Companies are beginning to treat climate risk the same as other enterprise risks."

What's Next

The coming weeks will reveal the full fallout from these policy shifts. In the US, the SEC's formal rollback will face intense scrutiny and potential legal challenges. The Clean Air Act bills in the House are poised for further debate. Colorado's data center legislation will continue its contentious journey. In Canada, the political aftermath of the Alberta deal and Guilbeault's resignation is still unfolding. Businesses in all three nations must adapt quickly to an unpredictable and evolving climate policy landscape.