US agency proposes reversal of greenhouse gas endangerment finding

The US Environmental Protection Agency proposed rescinding its 2009 “endangerment finding,” the outcome of assessments of scientific studies that allowed the agency to regulate greenhouse gas (GHG) emissions on the grounds that six common GHGs, including carbon dioxide, endanger public health and welfare.  

The endangerment finding provides the legal and scientific basis for the EPA to regulate emissions under the Clean Air Act. If finalized, the proposal to rescind it would reverse GHG emission regulations on motor vehicles and engines, the agency said July 29. It would also make it harder for the EPA to craft new regulations around GHG emissions in the future. 

The agency pointed to a Department of Energy (DOE) study released the same day that cast doubt on GHG emissions' impact on the US climate. The study claims that leading climate models overstate the warming effect of atmospheric CO2 and downplays the economic need for extensive mitigation efforts. The negative economic impacts of “CO-induced warming ... are too small to justify aggressive abatement policy,” the study’s authors wrote. The department opened the report for public comment on Aug. 1. 

Market participants are increasingly looking for insight into how physical climate risks may impact their businesses. This was a common refrain at S&P Global Sustainable1’s inaugural Climate Summit hosted by the S&P Global Climate Center of Excellence, which convened climate scientists alongside financial institutions and business leaders, and at London Climate Action Week, where discussions focused on building and financing resilience to climate risks. 

Exposure to extreme weather events and chronic climate hazards has already created financial costs for companies and communities, and these costs are projected to climb, even under a climate change scenario that assumes strong GHG emissions reduction, according to research from S&P Global Sustainable1. The total cost of climate physical risk for the world’s largest companies is projected to reach $1.2 trillion annually by 2050 under this scenario, according to S&P Global Sustainable1 data; this figure assumes no adaptation measures and is not adjusted for future inflation.  

This week’s newsletter explores the legal implications of the EPA’s plan to roll back the endangerment finding. We also look at the rapid growth of datacenters in Europe and their impact on power demand. S&P Global Sustainable1 research has demonstrated that while major datacenter operators are sourcing much of their energy from renewables, the need for continuous power means it will be difficult to phase out fossil fuel-based generation completely.  

We also examine recent sustainability-related policy developments in our Regulatory Tracker, including Australia’s sustainable finance taxonomy and an EU consultation on the circular economy.  

In the latest episode of the All Things Sustainable podcast, we explore how some businesses in Ukraine have leaned into sustainability since Russia invaded the country more than three years ago.  

Chart of the Week 

EPA faces tricky legal road with novel argument for scrapping GHG rules  

The US Environmental Protection Agency's plan to repeal its 2009 endangerment finding hinges on the argument that US emissions are not locally significant or large enough to warrant regulation. That is a novel legal tactic, albeit not a new idea, that environmental attorneys said will face close scrutiny and likely prompt a slew of legal challenges, S&P Global Commodity Insights reports. Read more on S&P Capital IQ. 

Read More >>  

European datacenter power demand to double by 2030, straining grids  

The rapid growth of datacenters in Europe will result in a near doubling of the sector's electricity needs by 2030, according to the latest forecast from S&P Global Market Intelligence 451 Research. An expected sharp increase in datacenters has raised concerns about their environmental impact.  

Read More >>

Regulatory Tracker — June 2025 

In this monthly update on sustainability regulations and policy globally, we look at the launch of Australia’s sustainable finance taxonomy, the UK’s draft disclosure standards based on those of the International Sustainability Standards Board and an EU consultation related to waste reduction and improvements to the circular economy.  

Read More >>

Corporate-signed US clean energy surpasses 130 GW amid shifting policy support  

Corporate clean energy procurement in the US maintained solid momentum during the first few months of President Donald Trump's second term in office, with a nearly 10% rise in tracked volume, despite shifting energy priorities in Trump's second term, according to S&P Global Market Intelligence research.   

Read More >>   

Podcast 

How war is driving Ukrainian companies to embrace sustainability 

In this episode of the All Things Sustainable podcast, we examine how the sustainability landscape is changing in Ukraine and hear about companies' strategies to protect workers and address mental health challenges stemming from the Russia-Ukraine war.  

>>Listen on Spotify, Apple Podcasts or YouTube 

The All Things Sustainable podcast from S&P Global will be an official media partner of The Nest Climate Campus during Climate Week NYC. Register free to attend here. 

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This piece was published by S&P Global Sustainable1 and not by S&P Global Ratings, which is a separately managed division of S&P Global.