Analysis-Trump's rollback on greenhouse gases will cause confusion, could add costs, investors say

Core Viewpoint - The Trump administration's decision to overturn Obama-era greenhouse gas regulations will create confusion and increase costs for businesses and investors, according to shareholder advocates and portfolio managers [1][2]. Group 1: Regulatory Changes - The Trump administration plans to formally rescind the 2009 scientific findings linking carbon dioxide to health dangers, which have guided pollution standards for over 15 years [2]. - This rollback represents the most significant climate change policy reversal by the Republican administration, following a series of regulatory cuts aimed at promoting fossil fuel development and hindering clean energy initiatives [2]. Group 2: Impact on Companies - Companies are left in uncertainty regarding future regulatory requirements, particularly those that have already invested billions in emissions reduction [3]. - Large multinational companies are expected to continue adhering to stricter emissions standards globally, despite the rollback [3]. - The regulatory uncertainty may lead to "stop-start" planning, introducing volatility into supply chains, particularly affecting sectors like semiconductors and industrial equipment [5]. Group 3: Investor Concerns - The repeal of these regulations complicates the ability for investors to identify successful companies in the transition to a low-carbon economy, creating uncertainty for firms with significant capital expenditure plans [5]. - The potential for future administrations to reinstate previous regulations could lead to operational cost increases that many company boards may be reluctant to accept [6].