Court Again Declines to Block California Climate Disclosure Laws, Pauses Case Pending Appeal

Back in August, we wrote about a federal court’s refusal to issue a preliminary injunction that would have blocked California’s new climate disclosure statutes—SB 253, requiring large companies to disclose greenhouse gas emissions, and SB 261, requiring disclosure of climate-related financial risks—while a First Amendment challenge brought by the U.S. Chamber of Commerce and other business groups moved forward.

Since then, the litigation has advanced. Below is a summary of the most recent developments, their implications, and what to watch for next.

Key Developments

• Appeal Filed: On August 20, 2025, the plaintiffs filed a notice of appeal with the Ninth Circuit Court of Appeals, challenging the district court's denial of preliminary relief.
• Renewed Injunction Request Denied: Plaintiffs also asked the district court to pause enforcement of both SB 253 and SB 261 while the appeal is pending. On September 11, 2025, the district court again declined to grant that relief, holding to its prior reasoning.
• Case Paused Pending Appeal: The district court has stayed further proceedings until the Ninth Circuit rules (the hearing date has not been set yet).

Practical Implications

Enforcement Remains in Effect
Neither SB 253 nor SB 261 has been enjoined. Companies that are in scope should continue preparing to comply as though the statutes are fully enforceable. 

Regulatory Uncertainty Continues
The California Air Resources Board (CARB) is still developing implementing regulations. Key questions—such as the scope of covered entities, the methodology for Scope 3 emissions reporting, and disclosure formats—remain unsettled. Companies may consider participating in CARB workshops and comment periods to help shape the final rules.

Deadlines Could Shift—But Don’t Count on It
If the Ninth Circuit grants an injunction, compliance deadlines could be delayed. This is especially important with respect to SB 261, which requires companies to file their first climate-risk reports by January 1, 2026. However, no Ninth Circuit hearing date has been set—and given the current briefing schedule—it is uncertain whether the Ninth Circuit will issue a ruling before that deadline. Businesses should not assume any compliance extensions absent a clear directive from the courts or CARB, and should continue preparing as though the reporting obligations will arrive on schedule.