Court Blocks California’s Climate-Risk Law as Emissions Rule Moves Forward

A federal Ninth Circuit Court of Appeals has temporarily halted enforcement of California’s SB 261, which required companies with over $500 million in annual revenue doing business in the state to disclose climate-related financial risks starting January 1, 2026. The injunction, sought by the U.S. Chamber of Commerce and business groups claiming First Amendment violations, provides relief amid an appeal set for January 2026, while SB 253—mandating Scope 1, 2, and later Scope 3 emissions reporting for firms over $1 billion in revenue—continues toward its 2026 rollout enforced by the California Air Resources Board (CARB). The ruling highlights tensions in state-led climate governance as federal rules remain uncertain, affecting over 3,100 companies and intensifying debates over compliance costs and national standards.​
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