WSJ: Trump to scrap landmark climate finding in sweeping regulatory rollback

The Trump administration is preparing a sweeping rollback of US climate regulation, upending emissions rules and reshaping the outlook for energy, autos and clean-tech markets.Wall Street Journal (gated) with the report. Summary:The Trump administration plans to repeal the 2009 “endangerment finding,” the legal foundation for US greenhouse-gas regulation.The move would remove federal emissions requirements for motor vehicles and related compliance programs.The rollback represents the most sweeping deregulation of US climate policy to date.Fossil fuel and traditional energy sectors are expected to benefit, while clean energy and EV-linked industries face new headwinds.Legal challenges are likely, potentially creating prolonged regulatory uncertainty for companies.The Trump administration is set to repeal the 2009 “endangerment finding,” a landmark scientific determination that greenhouse gases pose a threat to public health, in what would amount to the most significant reversal of US climate regulation on record.The finding has served as the legal foundation for federal greenhouse-gas rules under the Clean Air Act, enabling the Environmental Protection Agency to regulate emissions from power plants and impose fuel-efficiency and emissions standards on motor vehicles. Its removal would strip away the legal basis for a wide range of climate-related regulations.According to administration officials, the initial focus of the rollback will be on motor vehicle emissions. Planned changes would eliminate requirements for measuring, reporting and certifying greenhouse-gas emissions from vehicles, along with associated compliance programs, emissions credits and reporting obligations. While rules governing power plants and other stationary sources would not be immediately affected, analysts note that repealing the finding could pave the way for broader deregulation in the future.The administration is also expected to direct the Defense Department to source electricity from coal-fired power plants, reinforcing its emphasis on fossil fuels as a pillar of economic and national security. Officials argue that easing environmental regulation will lower energy costs and reduce compliance burdens for industry.From a market perspective, analysts say the move is a clear positive for fossil-fuel producers, coal-fired utilities and segments of the traditional auto industry that have struggled with tightening emissions standards. Oil-and-gas firms, refiners and pipeline operators are also seen benefiting from a more permissive regulatory environment.Conversely, clean energy developers, electric vehicle manufacturers and suppliers tied to emissions compliance could face renewed uncertainty. Analysts warn that weaker federal standards may slow investment in renewables and EV infrastructure, particularly in the US market, even as global competitors continue to operate under stricter regimes abroad.The rollback is expected to face legal challenges from environmental groups, potentially leading to years of litigation. During that period, enforcement could be scaled back, creating a patchwork of state-level rules and regulatory uncertainty for companies with national or global footprints.Overall, analysts say the decision marks a decisive shift in US climate policy, with profound implications for capital allocation, energy markets and the competitive balance between traditional and low-carbon industries.