New California Statute on Voluntary Carbon Offsets and Greenhouse Gas Claims Takes Effect January 1, 2024
The new law imposes disclosure requirements... on California voluntary carbon offset marketers and sellers; California voluntary carbon offset purchasers and users; and entities operating in California making greenhouse gas related claims.
December 19, 2023
Signed into law by California Governor Newsom on October 7, 2023, AB 1305 is known as the “Voluntary Carbon Market Disclosures Business Regulation Act.” The new law imposes disclosure requirements, described below, on California voluntary carbon offset marketers and sellers; California voluntary carbon offset purchasers and users; and entities operating in California making greenhouse gas related claims. This new law is one of three related disclosure laws enacted in California this term; we previously published on the other two, SB 253 and SB 251, here.
Requirements of AB 1305
Each requirement discussed below takes effect on January 1, 2024. The legislature’s goals in passing the statute are “transparency” and “substantiation.” No agency, however, is tasked with issuing guidance or regulations under the statute. Important statutory terms, like “marketing,” “operating” in Califo( article continues at Dentons )