A federal judge on Thursday denied a bid by business groups to block California’s climate disclosure laws while their lawsuit moves forward.
What happened: U.S. District Judge Otis Wright II ruled that the U.S. Chamber of Commerce, along with other California business and farming groups, failed to prove their argument that the two climate disclosure laws, SB 253 and SB 261, unlawfully infringe on their First Amendment rights. He rejected their request for a preliminary injunction.
Why it matters: The decision notches another win for California in defending the two nation-leading laws, which compel large companies operating in the state to disclose their carbon footprint and climate-related financial risks. The laws took on additional importance after the Trump administration pulled back on a Biden-era federal climate disclosure rule.
More details: Wright said halting the laws would undermine the state’s public interest in giving investors consistent climate-risk information and reducing overall greenhouse gas emissions. He disagreed, however, that the disclosures provide a public interest by benefiting consumers or correcting “misleading” environmental marketing.
