Biden called the ruling "another devastating decision that aims to take our country backwards."
"While this decision risks damaging our nation's ability to keep our air clean and combat climate change, I will not relent in using my lawful authorities to protect public health and tackle the climate crisis," Biden said in a statement.
The SEC’s proposal hads drawn a number of powerful opponents, including the Chamber of Commerce and Republican lawmakers, who may regain the majority in Congress in November.
SEC Chairman Gary Gensler told reporters in April he believes the SEC has the authority to press forward with its climate-change rule, proposed in March. Gensler said that investors need the data to make informed decisions.
But the Chamber of Commerce has stated it disagrees with that interpretation of the law, arguing in comments to the SEC in April that the rule is unprecedented in its scope and complexity and, as such, exceeds the SEC’s rulemaking authority.
One SEC lawyer said Thursday’s ruling would motivate opponents of the rule, some of whom had already signaled their willingness to fight the proposed climate change rule in court.
“Even before, it was clear that the SEC might have had a difficult time escaping judicial skepticism about the scope of agency authority to act in the climate area,” Howard Fischer, a partner at Moses & Singer and former senior trial counsel at the SEC, told Reuters. “The SEC’s argument that climate risk is finance risk is not likely to find a sympathetic ear at the Supreme Court."