United States of America

California Enacts Emissions Law for Big Businesses

OCT 10 2023·Updated FEB 7 2024

Story

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The Facts

On Saturday, California Gov. Gavin Newsom signed a new law requiring large businesses to start disclosing a range of greenhouse emissions starting from 2026.
Natlawreview
17 states already require direct emissions to be disclosed by major emitters. The California Air Resources Board must set up a reporting system by Jan. 1, 2025.
PBS NewsHour
SB 253 applies to over 5.3K firms with annual revenues of over $1B. The emissions they must report include those from building operations, employee travel, and transportation.
PBS NewsHour
A companion bill passed by California would also require firms earning over $500M annually to disclose their climate-related financial risks beginning in 2026.
guardian
California had earlier set climate policies like aiming to ban gas-powered car sales by 2035 and reducing emissions by 2030 to 40% below 1990 level.
ap
The new law in the largest economy among US states comes as the Securities and Exchange Commission is in the midst of finalizing climate-related disclosure rules.
Reuters

Sources Split

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The Spin

Narrative A

California is leading the way in a growing movement that is nudging Big Business to give investors a better idea of the climate risks they face. As cleaner energy becomes increasingly the norm, businesses that don't comply could face expensive litigation. This is great news as the world's "fifth-largest economy" rolls out this vital green policy.

The Washington Post

Narrative B

This has all the potential to backfire on California. The burden and complexity of the new law are likely to force companies out of California to states with lighter regulations. The "one-size-fits-all" emissions rules unfairly lump various metrics together, making the following of these rules expensive.

Morning Star