Ninth Circuit pauses California's climate-risk reporting law (SB 261) weeks before its first deadline
On 18 November 2025 the US Court of Appeals for the Ninth Circuit enjoined enforcement of California's SB 261, which required companies with more than $500 million revenue doing business in California to publish climate-related financial risk reports by 1 January 2026, pending appeal. SB 253, the emissions reporting law for companies over $1 billion, was not affected. CARB said it would not enforce SB 261 while the injunction stands.
California's Climate-Related Financial Risk Act (SB 261) and Climate Corporate Data Accountability Act (SB 253), both of 2023, are challenged by business groups on constitutional grounds.
What happened
- The Ninth Circuit granted an injunction against enforcement of SB 261 pending appeal, without giving reasons.
- SB 253, which requires companies with more than $1 billion in revenue doing business in California to report greenhouse gas emissions, was left in effect.
- The California Air Resources Board (CARB) said it would not enforce SB 261 against companies that miss the 1 January 2026 deadline while the injunction remains, and would set a new reporting date after the appeal.
- Oral argument took place on 9 January 2026.
Later developments
CARB adopted its initial SB 253 regulations in February 2026 and in June 2026 deferred the first emissions reporting deadline to 10 November 2026. See our coverage.
Who is affected
US companies, including subsidiaries of non-US groups, that do business in California and meet the revenue thresholds.