The new California law requires companies to disclose their carbon emissions. This legislation is a big deal since it is the nation's first-of-its-kind law.
Critics said that the new law serves as a blueprint for national climate accountability. However, despite the benefits it can offer, Gov. Gavin Newsom is still concerned with the new rule. Here's why.
Newsom Concerned With New California Carbon Emission Disclosure Law
According to BBC's latest report, the new SB 253 was signed by Newsom after it was passed by the state legislature. Thanks to this law, big companies with over $1 billion in annual revenue will be required to provide their carbon emission database.
Gavin Newsom praised the benefits that the new law could offer. However, the Californian leader is still concerned about it.
"This important policy, once again, demonstrates California's continued leadership with bold responses to the climate crisis," he explained.
"However, the implementation deadlines in this bill are likely infeasible," added the governor.
Aside from this, Newsom also shared another concern of his, which is the overall financial impact of the law on businesses.
Under the new law, the California Air Resources Board is required to create a system for reporting the carbon emissions of companies operating in the state.
CARB officials need to do this as early as January 1, 2025, which is just around a year from this day. The latest California carbon emission disclosure law comes as calls to address climate change increase.
Because of what's happening in the planet's environment, large corporations are being pressured to come clean and disclose how much they emit gases that trap heat in the atmosphere.
More About California's New Carbon Emission Disclosure Law
The Guardian reported that California's SB 253 companies are not only required to disclose their own carbon emissions. The law will also mandate them to provide reports revealing the carbon emissions of their customers and supply chains.
But, this could be an issue since the so-called "scope 3 emissions" are highly controversial among business interests, especially in the fossil fuel industry.
Aside from the SB 253, another companion bill called "SB 261" was passed by the state's legislature.
This additional bill would also require companies with $500 million yearly revenue to disclose their climate-related financial risks.
Companies will be required to do this starting in 2026. If they fail to comply, the Californian government will implement annual penalties.
"The disclosure requirements would really pull back the curtain on the biggest climate destroyers in the oil industry and make it harder to greenwash," explained Center for Biology Diversity's Senior Atty. Hollin Kretzmann.
Other officials also praised the bill authors and Gov. Gavin Newsom for their efforts to make such laws possible. These include NextGen Senior Policy Advisor David Weiskopf, who said that implementing these new laws will prove their shared commitment to California's climate leadership.
