US regulation

The US landscape: fragmented and state-led

Unlike Europe, the United States has no unified federal climate-reporting framework for companies. The SEC's flagship rule, finalised in 2024, never took effect. California fills the void with three texts (SB 253, SB 261, AB 1305) covering GHG reporting, climate risk and credit disclosure. The FTC has been updating its Green Guides since 2022 without publication. And the EU's ECGT Directive applies to US companies selling to EU consumers, creating extraterritoriality that US teams regularly overlook. A shifting landscape, to monitor front by front.

SEC Climate Disclosure Rule: finalised then abandoned

The SEC's Climate-Related Disclosures Rule, adopted on 6 March 2024, was meant to require listed companies to disclose their GHG emissions (Scopes 1-2 mandatory, Scope 3 if material), climate risks and transition strategy. Faced with more than nine lawsuits (Texas, Republican states, industry lobbies), the SEC voluntarily stayed its application in April 2024. In March 2025, under a new administration, the SEC announced it was withdrawing its defence in court. The 8th Circuit Court stayed the litigation on 12 September 2025 pending an SEC decision. Bottom line: the rule has never taken effect, and its future is uncertain. No active federal obligation today.

California SB 253: the GHG reporting that does apply

The Climate Corporate Data Accountability Act (SB 253) targets public and private companies with global revenue above $1 billion that 'do business' in California. This captures a large share of European companies with a subsidiary or significant operations there. The California Air Resources Board (CARB) adopted the initial regulation at its February 2026 hearing. First Scope 1 and 2 deadline: 10 August 2026, on 2025 data. Scope 3 obligations begin in 2027 (rulemaking ongoing). Limited assurance required, then reasonable assurance from 2030. Penalties up to $500,000 per non-compliant year.

California SB 261: climate risk suspended

The Climate-Related Financial Risk Act (SB 261) requires companies generating over $500M in revenue and operating in California to publish a biennial report on their climate-related financial risks, aligned with the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations or the upcoming IFRS S2. The expected date was 1 January 2026. But the 9th Circuit issued a preliminary injunction suspending application, pending a constitutional ruling (First Amendment, territoriality principle). Status as of spring 2026: stayed, with no clear timeline to reactivation. Watch but not a priority.

California AB 1305: credit disclosure since 2024

The Voluntary Carbon Market Disclosures Act (AB 1305) is the text most directly relevant to credit buyers. In force since 1 January 2024, it requires any entity operating in California that buys or sells carbon credits, or makes a 'net zero', 'carbon neutral' or equivalent claim, to publish on its website a detailed file: project name, geography, methodology, vintage, registry, retirement ID, amount paid, estimated success rate. No revenue threshold: the law applies to any company concerned, regardless of size. Fines can reach $2,500 per day of non-compliance, capped at $500,000 per violation.

FTC Green Guides: under revision since 2022

The Federal Trade Commission launched in 2022 a revision of its Green Guides, the last version of which dated from 2012. The Green Guides are not regulation in the strict sense, but interpretive guidance that allows the FTC to pursue deceptive commercial practices under Section 5 of the FTC Act. Stakes of the revision: framing 'carbon neutral' and 'net zero' claims, clarifying the use of the term 'renewable', treating credit-related claims. The new version had not been published as of spring 2026, and the timetable remains uncertain under the new administration. In the meantime, the 2012 guides remain applicable.

ECGT: the extraterritoriality US teams forget

The EU's ECGT Directive applies to any trader selling to EU consumers, regardless of headquarters. In practice, a US company selling into Europe (e-commerce, retail, B2C) is subject to the ban on product 'carbon neutral' claims from 27 September 2026. This is the most immediate extraterritorial reach of EU climate law, and is regularly underestimated by US teams. A US product marketed on Amazon Europe or via an EU retailer must remove every 'carbon neutral', 'CO₂ neutral' or 'climate positive' mention from packaging and product pages. Enforcement will come from national authorities (DGCCRF in France, equivalents in each Member State) and from consumer associations.

Practical strategy for a US company

Four concrete priority actions. (1) Assess your exposure: do you have over $1B in global revenue? Do you do business in California? Do you sell to EU consumers? Every yes opens a distinct obligation. (2) For those subject to SB 253, prepare Scope 1-2 reporting for August 2026, and start Scope 3. (3) For AB 1305, publish a disclosure page per credit project purchased or per claim made, as soon as possible if not already done. (4) For ECGT, immediately drop product 'carbon neutral' claims from European materials and migrate to corporate-level contribution language. The cost of compliance is far below the reputational and financial risk of non-compliance.

The information on this page is provided for informational purposes and does not constitute legal advice. Regulatory frameworks evolve: consult your advisors for tailored analysis.