Landmark EPA Climate Finding on Air Pollution and GHG Emissions Rescinded

What’s Next for Businesses?

The Environmental Protection Agency recently rescinded the endangerment finding that has served as the legal underpinning for regulations on man-made greenhouse gas (GHG) emissions for nearly two decades. This means GHG emissions could no longer be subject to federal regulations, specifically targeting emissions standards for engines and vehicles manufacturers.

This announcement follows the EPA’s 31 reconsiderations of rules under the Clean Air Act, Clean Water Act and the Risk Management Program last year.

As the regulatory landscape continues to evolve, many sustainability professionals are asking what these proposals mean for their companies and reporting practices.

Key Aspects to Know

• The repeal targets vehicle emission standards, not power plants.
• The repeal will likely face legal challenges.
• Industry groups might remain cautious about supporting the repeal based on legal uncertainties.
• States such as California could challenge the policy change as unlawful and dangerous based on decades of scientific research demonstrating threats from climate change.
• The repeal significantly weakens the federal government’s authority to regulate greenhouse gas emissions.

What does this mean for companies?

A federal rollback of the landmark climate finding doesn’t remove risk for businesses. Expectations from global and state regulators, investors and stakeholders will remain. And decentralization could introduce more fragmentation and complexity in organizational compliance.

Should this and other proposed changes to the federal regulations and standards be finalized and implemented, which could take up to two years, other state and local regulations will remain in effect.

The organizations that scale back sustainability efforts and data now may experience short-term relief but could face additional challenges later if these rulings are reversed.

What to Do Next

As the sustainability landscape continues to evolve, Sphera recommends companies:

• Stay informed – Monitor regulatory developments closely. Sphera’s CyberRegs solution tracks changes at both federal and state levels, providing real-time visibility into evolving requirements.
• Stay compliant – Continue meeting current standards. Staying compliant protects your license to operate and maintains trust with domestic and international stakeholders, customers and regulators. Sphera’s Compliance Assurance solution enables companies to maintain a compliance register and track in-depth compliance status across their organization.
• Remain audit-ready – Transparency is key. Sphera’s LCA solution helps you model the environmental impacts of your products and make data-driven decisions.