Governor Newsom signed this bill into law in October 2023. Its goal is to enhance company transparency and accountability regarding carbon-related disclosure.
Key Aspects
Requires a business that is selling voluntary carbon offsets to disclose information on their website about the carbon offset project—including reductions or removals, standards, failure contingencies and credit calculation protocols.
Requires a business that purchases voluntary carbon offsets and makes claims regarding being net-zero or carbon neutral to disclose information on their website—including the offset registry or program, offset project type, protocol used and information documenting how the claim was determined to be accurate.
Imposes a $5,000 per day civil penalty for each violation, not to exceed a total of $500,000.
Latest Update
The bill became effective on January 1, 2024, however, the intended date for the first disclosure was January 1, 2025.
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