Analysts say Supreme Court’s Chevron ruling may limit action on climate, EVs

The recent ruling by the US Supreme Court striking down the Chevron Doctrine creates Legal and regulatory uncertainty regarding regulated facilitiesThis could make it harder for the federal government to address climate change, Moody’s credit rating agency said last week.

“lack of “The lack of clarity about future EPA requirements increases uncertainty and makes it difficult for power companies to determine the most appropriate and cost-effective power generation mix,” Moody’s said, according to UtilityDive.com.

“The burden of interpreting the laws could overburden lower courts, causing potential delays and inconsistencies,” the credit rating agency said.

Moody’s added that in the absence of new legislation, the agency’s weak authority makes it unlikely that the United States will achieve its stated climate goals, increasing the risk of increased physical climate-related risks in the long term.

A separate analysis by Jefferies said the decision May curb investments In electric vehicles and developing safer chemicals used in manufacturing.

And since judges will be required to interpret the laws independently, rather than defer to agencies like the EPA, more lawsuits could be filed challenging the agency’s rules, which could limit investment in the shift to electric vehicles and the development of alternatives to PFAS, or “forever chemicals,” according to Jefferies analyst Sari Boroditsky.

The analyst pointed to Xylem (XYL) as a stock that could be affected if PFAS investments are scaled back, and companies including TE Connectivity (TEL), Amphenol (APH), Sensata Technologies (ST), and Littlefuse (LFUS) could be affected.

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