On 12 February 2026, President Trump announced that the Environmental Protection Agency (EPA) repealed the ruling that greenhouse gases (GHG) are a threat to human health. The “Endangerment Finding” had been in place since 2009 under the Obama administration. This article will look at the impacts the decision will have on businesses operating in the United States.
Previous Stance on Greenhouse Gases (GHGs)
The “Endangerment Finding” was first announced by the EPA in 2009; it found that six key greenhouse gases, including carbon dioxide, are a danger to human health. The ruling allowed the EPA to spearhead the federal effort to reduce emissions in the United States as Congress was unable to agree on legislation.
In 2012, the U.S. Court of Appeals upheld the “Endangerment Finding”, particularly that the greenhouse gases as outlined by the EPA were covered by the Clean Air Act’s definition of air pollutants.
As a result, the EPA coordinated on a number of rules to reduce greenhouse gas emissions including regulating vehicle emissions. Former EPA attorney Meghan Greenfield described it as a “lynchpin of US regulation on greenhouse gases… all of the standards for each of the sectors are premised on this one thing”.
Repealing the Endangerment Finding
On the 12 February 2026, President Trump announced that the EPA repealed the ruling that greenhouse gases are a threat to human health in the “single largest deregulatory action in U.S. history”. The administration believes that by deregulating the “Endangerment Finding”, $1.3 trillion will be saved, largely from a lower cost in new cars and products across industry.
While the administration believes that the deregulation will bring about lower costs across American manufacturing, it puts doubt about the future positioning of international trade as major economies remain focused on limiting pollution and carbon emissions.
Demonstrating US Commitment to Decarbonisation
Despite this week’s actions, NUS maintains the view that businesses in the USA and globally are still committed to net zero and proactive decarbonisation regardless of current political opinion. This can be demonstrated by the below snapshot of activities showing that corporate appetite for decarbonising business operations in the US is unlikely to significantly diminish in the coming years:
SBTi Commitments & Voluntary Standards
Over 10,000 companies have voluntarily set science-based targets including 1,393 from the United States. Expectations from customers, investors and wider supply chains means that committing to decarbonisation is required best-practice, regardless of shifts in national legislation. Other leading standards such as CDP and RE100 are also key driving forces in ensuring US companies maintain a stable commitment to sustainability.
Decarbonising is Global in Nature
The integration of global supply chains ensures that many companies have to account for all emissions and maintain emission reduction targets to comply with other reporting standards such as the European Union’s Corporate Sustainability Reporting Directive (CSRD). In addition, many large companies across the globe require their main suppliers to also commit to net zero in order maintain their custom. Any US company supplying customers outside of the country will therefore continue to face carbon and sustainability reporting / action.
California Carbon Legislation
California’s introduction of key legislation including the Climate Corporate Data Accountability Act (SB 253) and the Climate-Related Financial Risk Act (261) demonstrates that state-level support is growing in momentum with companies under scope now required to report on emissions and climate impacts.
As California requires companies to report Scope 3 emissions, the legislation will have a knock-on effect across the country as suppliers outside of California will feed into upstream and downstream emissions categories of reporting entities. States such as Illinois, New Jersey, New York, and Oregon are also proposing the introduction of Scope 1, 2 and 3 reporting legislation.
Carbon Reduction is Already in Action
Many companies in the US have heavily invested in long-term decarbonisation activities such as Power Purchase Agreements (PPAs), on-site generation and electrification, meaning that support for reducing emissions and environmental impacts is firmly rooted in long-term financial and strategic decision-making.
Next steps
If you would like to discuss how legislation and policy is impacting decarbonisation strategies and requirements across the US (and global markets) please contact us online or email contact@nusconsulting.com.