Rethinking Climate Risk: A Smarter Approach to Policy and Progress

Contributed by Todd Perry, CEO, PPM Consultants

On July 29, 2025, the Environmental Protection Agency (EPA) formally proposed to rescind its 2009 Endangerment Finding, marking the most significant climate deregulatory move in U.S. history^[1]. This decision initiates the dismantling of vehicle emissions standards and signals a broad reevaluation of climate policy. It follows an Executive Order in January 2025 titled “Unleashing American Energy,” which directed the EPA to assess whether the original finding remains scientifically and legally justified. The agency released a 302-page proposed rule and opened a 45‑day public comment period ending September 15^[2].

To ensure broad participation, the EPA scheduled virtual public hearings on August 19 and 20, 2025, with a potential additional session on August 21. The agency has encouraged public comments to be submitted through Regulations.gov, email, mail, or hand delivery, as noted in the Federal Register.

While Earth’s climate is undoubtedly changing, the national response must be grounded in updated science, sound economics, and an appreciation for the foundational role of affordable, reliable energy in economic growth and social welfare. For decades, the climate policy discussion has been framed in terms of extremes—either alarmist overreach or complete inaction. However, most Americans desire a pragmatic path forward, one rooted in stewardship, opportunity, and common sense. This moderate, evidence-based center is where meaningful reform must occur.

The 2009 Endangerment Finding, based largely on IPCC assessments and climate models from 2007, identified six greenhouse gases, including carbon dioxide (CO₂), as threats to public health and welfare under Clean Air Act Section 202(a)^[3]. That designation provided the legal basis for sweeping regulations across key sectors, including transportation, energy, and manufacturing. Yet many of the climate models that shaped the finding have since overestimated temperature increases and exaggerated predicted impacts. As subsequent data accumulated, the link between greenhouse gas emissions and adverse outcomes—such as extreme weather, crop failures, or widespread health risks—appeared less conclusive.

The 2025 EPA proposal reflects a substantial pivot. On March 12, 2025, EPA Administrator Lee Zeldin announced that the agency would formally reconsider the finding, working in partnership with the Office of Management and Budget (OMB^)[4]. This initiative accelerated in June 2025 with the proposed repeal of GHG performance standards for power plants, culminating in the July 29 release of the broader rule. The proposal seeks to remove the legal underpinning for regulating CO₂ emissions from mobile sources under the Clean Air Act. Scientific developments support this regulatory shift.

Multiple studies show no statistically significant increase in hurricane or tornado intensity associated with higher greenhouse gas concentrations^[5]. Cold-related mortality continues to exceed heat-related deaths, and longer growing seasons have improved agricultural output in many regions. Despite fears of ecosystem collapse, many species and systems exhibit adaptability in the face of modest warming. Meanwhile, health outcomes related to ozone and fine particulates show minimal correlation with rising CO₂ levels. EPA lawyers reference Supreme Court precedents including West Virginia v. EPA and Utility Air Regulatory Group v. EPA in arguing that Section 202(a) lacks clear congressional authorization to regulate global climate under the major questions doctrine^[6].

The economic case for repeal is also compelling. The regulatory framework stemming from the Endangerment Finding has placed disproportionate burdens on low- and middle-income families, small businesses, and industrial communities. Higher compliance costs have translated into rising energy prices, reduced competitiveness, and constrained economic development. According to the EPA’s own estimates, removing the finding could yield up to $170 billion in savings over the next decade^[7].

Rather than abandoning climate leadership, the United States should reimagine it. A forward-looking climate strategy would focus on technological innovation, market-based solutions, and empirical data. Promising technologies—including advanced nuclear power, carbon capture and utilization, clean hydrogen, and AI-optimized smart grids—can drive emissions reductions while promoting growth and job creation. However, innovation alone is not enough. Structural reform is essential. The Clean Air Act, originally crafted to manage local air pollutants, was not designed for regulating global emissions. This legal mismatch has created ongoing conflict and uncertainty. Modernizing the statute to reflect 21st-century environmental challenges would restore clarity and public trust.

Equally problematic is the use of the Social Cost of Carbon (SCC)—a metric that estimates future economic harm from present-day CO₂ emissions. While conceptually useful, SCC estimates rely on assumptions that are often opaque or speculative, including global damage models, long forecasting horizons, and controversial discount rates. Critics argue for replacing the SCC with a more practical, U.S.-focused cost‑effectiveness framework.

To guide this transition, six strategic pathways should be pursued:

Ultimately, revisiting the Endangerment Finding is not the end of climate action—it is the beginning of a more pragmatic, transparent, and effective era of climate policy. It is an opportunity to reset the national climate dialogue, moving away from polarizing rhetoric and toward a balanced framework that values both environmental progress and economic opportunity ^[8].

If approached with humility, open debate, and a commitment to sound science, this reconsideration could catalyze a new era of American climate leadership—one that builds consensus, harnesses innovation, and secures energy resilience for generations to come.

Please reach out to me if you want to discuss this topic at todd.perry@ppmco.com!

References

1. EPA. Proposed Rule: Reconsideration of the 2009 Endangerment and Cause or Contribute Findings for Greenhouse Gases. July 29, 2025.
2. Reuters. Trump’s EPA to repeal core of greenhouse gas rules in major deregulatory move. July 29, 2025.
3. EPA. Endangerment and Cause or Contribute Findings for Greenhouse Gases Under Section 202(a) of the Clean Air Act. December 15, 2009.
4. EPA Press Release. EPA Administrator Zeldin Announces Reconsideration of Endangerment Finding. March 12, 2025.
5. D’Aleo, Joe & Dayaratna, Kevin. Keeping an Eye on the Storms: An Analysis of Trends in Hurricanes Over Time. Heritage Foundation, 2024.
6. Hogan Lovells. “EPA Proposes Reconsidering the 2009 GHG Endangerment Finding.” Legal commentary explaining reliance on Major Questions Doctrine and limits of Section 202(a) authority, July 2025.
7. EPA Economic Impact Summary: Proposed Rule on GHG Regulation. EPA, July 2025.