Big business wins again: Biden’s climate rules will hurt small businesses the most

The top U.S. financial regulator has issued climate disclosure rules that are more burdensome for small businesses than large companies, according to the agency’s own analysis.

While the rules would cost large companies $640,000 initially and $530,000 in subsequent years, they would cost smaller publicly traded companies $490,000 initially and $420,000 in subsequent years, the Securities and Exchange Commission (SEC) said in his proposal. The regulator’s analysis suggests that smaller businesses would feel a relatively greater financial burden as a result of the proposed disclosure rules.

“These climate regulations are unlike anything I have seen in my 25-year career in securities law, in the breadth and scope of the proposals,” said David Lynn, partner at the firm. Morrison & Foerster attorneys and former SEC official, Told The Wall Street Journal on Tuesday. “It sets up a whole new disclosure regime.”

The Democratic-led SEC on March 21 proposed a series of climate disclosure requirements that mandate public companies to publish data on emissions, how severe weather can affect their business activity and how they plan to move to a less carbon-intensive business model. (RELATED: Democrats turn to sustainable investing craze as way to advance climate agenda)

Banking Committee Chairman Sherrod Brown and filing member Pat Toomey speak with SEC Chairman Gary Gensler before a hearing September 14 in Washington, DC (Bill Clark/Pool/Getty Images)

After the rules were proposed, critics slammed the commission – led by Chairman Gary Gensler who was Chairman Joe Biden appointed in early 2021 – arguing that he overstepped his authority in Congress.

“The proposal will not bring consistency, comparability and reliability to business climate information,” said Hester Peirce, the SEC’s only Republican commissioner. said at the time. “The proposal, however, will undermine the existing regulatory framework which for many decades has underpinned consistent, comparable and reliable company information. We cannot make such fundamental changes to our disclosure regime without harming investors, the economy, and this agency.

Peirce added that the SEC had underestimated the costs the rules would inflict on businesses. Overall, the SEC projected the proposals would cost companies about $10.2 billion, Politico reported.

Earlier this month, the SEC extended the deadline for interested parties to file comment on the rules is June 17.

The SEC did not immediately respond to the Daily Caller News Foundation’s request for comment.

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