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California ‘Green Accounting’ Rule on CO2 Can Cost Companies Nationwide Billions, With No Benefit to Environment

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tuesday

California is leading the resistance against President Donald Trump’s deregulation agenda with new rules that will force companies operating in the state to produce audited reports on their carbon dioxide emissions, and analysts say these rules may soon apply to companies throughout the United States. 

California is preparing to implement two laws, SB 253 and SB 261, which would require companies operating in the state to monitor and report their CO2 emissions, as well as those of their suppliers and customers. These rules, originally passed in 2023, are similar but broader in scope than the mandate that was imposed nationwide by the Securities and Exchange Commission during the Biden administration, but which was effectively canceled under the current Trump administration. 

California’s so-called green accounting mandate “sets the U.S. standard for climate-related disclosures and has the potential to reach every part of a company’s value chain,” Sidley, a global law firm, stated. The mandate would also align America’s climate accounting rules with those of the European Union.  

“California’s SB 253 and SB 261 function as a de facto national mandate, especially for large companies that do business in the state,” Jason Isaac, CEO of the American Energy Institute, told The Daily Signal. “While the Trump administration is backing away from the SEC’s overreaching climate disclosure rule, California is charging ahead, forcing private companies to publish speculative and........

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