California AB 1305
Voluntary Carbon Market Disclosures Act — AB 1305 (2023), Health and Safety Code §44475-44475.3
Topic : Green claims · Level : Regional
Today
In force; website disclosures expected since 1 Jan 2025, updated at least annually.
Summary
California law requiring companies that make net zero or carbon-neutral claims, or buy or sell carbon offsets there, to publish supporting details on their website and update them yearly. Fines reach USD 2,500 a day, up to USD 500,000.
Who is concerned
- Turnover
- non précisé
- Employees
- non précisé
- Listed company
- cotées et non cotées
- Sectors
- All sectors
- Carbon offset sellers
- Triggering activities
- Net zero or carbon-neutral claims in CA
- Buying or using offsets for claims in CA
- Marketing or selling offsets in CA
- Extraterritorial reach
- Yes
Applies to any entity operating in California or making claims there, wherever based.
- Examples
- Brand selling 'carbon neutral' products in CA
- Offset project developer selling in CA
What the law requires
- Disclose on the website how net zero or neutrality claims are measured
- Disclose offset project details, registry and verification
- State whether claims are verified by an independent third party
- Update disclosures at least once a year
Penalties
Civil penalty up to USD 2,500 per day per violation, capped at USD 500,000.
What this changes for a supplier in China
Brands making climate claims in California need product or supplier emissions data and evidence of reductions from Chinese factories.
Expected evidence
- Product or site carbon footprint
- Emission reduction evidence
- Renewable electricity certificates
Tiers : Tier 1