March 15 (Reuters) - A U.S. appeals court on Friday

temporarily paused new rules issued by the Securities and

Exchange Commission (SEC) requiring public companies to report

climate-related risks.

The New Orleans-based 5th U.S. Circuit Court of Appeals

granted a request from Liberty Energy Inc. ( LBRT ) and Nomad Proppant

Services LLC to put the rules on hold while it considers the

oilfield companies' lawsuit challenging them.

The 5th Circuit did not explain the reasoning behind the

order. It was the first court action on a flurry of lawsuits

filed over the rules since the SEC approved them March 6.

The rules aim to standardize climate-related company

disclosures about greenhouse gas emissions, weather-related

risks and how companies are preparing for the transition to a

low-carbon economy.

The SEC did not immediately respond to a request for

comment.

First

proposed in 2022

, the rules are part of Democratic President Joe Biden's

efforts to leverage federal agency rulemaking to address climate

change threats.

The companies said in court filings that the rules would

force companies to collectively spend over $4 billion in

compliance costs and could open companies up to increased

litigation.

They argued the rules go beyond the SEC's authority

under U.S. securities law, and that they are a "thinly veiled

attempt" to inject the SEC into climate policy by requiring

disclosure of a "breathtaking volume of information" about

greenhouse gas emissions and other climate concerns.

On Wednesday, the SEC told the 5th Circuit that a pause

was unnecessary, since the rules have extended compliance

deadlines that do not require disclosures before March 2026. The

agency said any potential harm to the companies is therefore not

imminent.

The agency also said the rules "fit comfortably within"

its authority to require disclosure of information important to

investors, and that they would provide "consistent, comparable

and reliable information" about climate risks.

At least 25 Republican-led states

including West Virginia

, Texas and Ohio and major business groups like the U.S.

Chamber of Commerce have challenged the rules in court,

including in the 5th, 6th, 8th and 11th U.S. Circuit Courts of

Appeals.

The Sierra Club, one of the largest environmental

advocacy groups in the U.S., has meanwhile

challenged the rules

in the U.S. Court of Appeals for the D.C. Circuit, arguing

they do not go far enough to protect investors.

It is unclear whether the 5th Circuit or one of the

other courts will ultimately hear the challenges, since the

cases are expected to be consolidated and the venue picked via a

lottery.