Utility Dive•22 days ago
California issues enforcement advisory on climate disclosure law
Key Takeaway
Large power consumers and IPPs in California must prepare for new climate-related financial disclosure requirements under SB 261, which will impact risk assessments, compliance costs, and potentially investment strategies despite current legal challenges.
AI Summary
- •California's Air Resources Board (CARB) has issued guidance on SB 261, a state law mandating climate-related financial risk disclosures for large companies operating in California.
- •This guidance follows a temporary halt in the law's implementation by the Ninth Circuit, signaling ongoing regulatory intent despite legal challenges.
- •Large power consumers and IPPs operating in California, if they meet the 'large company' threshold, will likely face new compliance burdens and increased scrutiny on their climate-related financial risks.
- •The law could influence investment decisions and project financing by requiring companies to quantify and disclose climate risks, potentially favoring projects with lower climate exposure.
Topics
caisoemissionsfinancingpolicy
Article Content
The California Air Resources Board issued guidance on SB 261, which requires large companies to submit climate-related financial risk disclosures, after its implementation was halted by the Ninth Circuit last month.