The Supreme Court limited the EPA’s emissions enforcement power — and other agencies could be next

See ya later, regulator… The US Supreme Court just dealt environmental regulators a hefty blow. Yesterday, SCOTUS struck down an EPA plan to require power plants to cut emissions. (FYI: the plan didn’t have traction anyway.) The court said that regulations with sweeping economic consequences were invalid unless OK’d by Congress. That sets a precedent that could reshape relations between companies and regulators.

• Bad news for Biden, whose climate agenda relies on the EPA. With Congress split, the president relies heavily on federal agencies for enforcement.
• Good news for coal companies like Peabody Energy, Glencore, and Arch Resources, who now get an emissions hall pass. Many coal stocks have soared this year on high energy prices.

Light(er) green… The ruling comes as green investment has been losing steam. After outperforming the S&P 500 in last year’s bull market, ESG (aka: environmental, social, and governance) funds have underperformed in this year’s downturn. Meanwhile, climate-ambitious companies like BlackRock and Volkswagen have scaled back their sustainability goals in response to the energy crisis.

• Green pause: Experts expect the ruling to further delay the renewable transition, which could cut into sales for companies like Tesla, JinkoSolar, and ChargePoint.
• Pump pass: Fossil-fuel big shots like Shell, Chevron, and Exxon could benefit from growing demand and shrinking regulation.