Navigating Global Compliance After the US EPA Endangerment Repeal

On February 12, 2026, the United States Environmental Protection Agency (US EPA) finalised the rescission of its landmark 2009 Endangerment Finding.

This is not just a standard policy rollback; it is the single largest deregulatory action in US history. By revoking this scientific and legal cornerstone, the US federal government has effectively dismantled the mandate to report and regulate greenhouse gases (GHGs) under the Clean Air Act.

The Legal "Vanish" of Greenhouse Gases

The 2009 Finding was the bedrock of US climate authority. It legally classified six greenhouse gases, including carbon dioxide and methane, as threats to public health. This classification was the prerequisite for nearly all federal climate rules over the last 16 years.

Key Impacts of the 2026 Rescission:

• The US$1.3 Trillion Rollback: The administration is eliminating federal GHG standards for all vehicles and engines from Model Year 2012 through 2027 and beyond.

• Reporting Obligations Cease: For many industries, the federal requirement to measure, certify, and report carbon output has vanished.

• The Scope of Deregulation: While the repeal initially targets the transport sector, it sets a "domino effect" in motion. By applying the "Major Questions Doctrine," the US EPA argues that the US Congress did not clearly authorise the agency to resolve carbon policy through the Clean Air Act.

The Global Split-Screen: Divergence in the Superpowers

As the US retreats from federal climate oversight, the global landscape is fracturing. We are witnessing a "split-screen" moment where the world’s largest economies are taking diametrically opposite paths.

1. The European "Brussels Effect"

Despite the US rollbacks, the European Union moved into the definitive phase of its Carbon Border Adjustment Mechanism (CBAM) on January 1, 2026. This means any US manufacturer exporting carbon-intensive goods (steel, aluminium, electricity) to the EU must still provide verified emissions data or face significant financial levies. In essence, the EU is now setting the de facto standards for US exporters that the US EPA has abandoned.

2. China’s Green Pivot

Beijing is doubling down on regulations. New analysis shows that China’s carbon dioxide emissions have now been "flat or falling" for 21 consecutive months as of February 2026. China is utilising this "green leadership" vacuum to frame itself as the primary partner for global green infrastructure, challenging the long-term technological competitiveness of US industry.

3. Australian Reform

In contrast to the US, the Australian Parliament passed the Environment Protection Reform Act 2025, which establishes the nation's first independent National Environmental Protection Agency (NEPA), scheduled to take effect in July 2026. This creates a high-friction environment for global firms that must now manage hyper-local compliance across vastly different jurisdictions.

The US EPA’s retreat from climate regulation creates a massive "data gap." However, for those managing global infrastructure, this is a call to action.

When federal reporting becomes optional in the US, internal observability becomes a strategic asset. Global organisations can no longer rely on a single federal standard; they must build the transparent, independent telemetry systems required to maintain trust and market access in a fragmented global market.