SACRAMENTO, California — A key California fiscal committee shelved a proposal Thursday that sought to protect companies using carbon credits from certain greenwashing lawsuits. It was a setback for project developers hoping to keep private money flowing into climate projects.
What happened: The state Assembly Appropriations Committee held state Assemblymember Chris Rogers’ (D) AB 1911 on suspense, effectively killing the bill for the year.
The bill would have made it harder to sue companies for false advertising if they followed California disclosure rules and used carbon credits from programs approved by state regulators, or certain international bodies. It sought to take a more business-friendly approach than past legislative efforts, including a bill by state Sen. Monique Limón (D) to police carbon credits, that was vetoed by Gov. Gavin Newsom (D).
Why this matters: The fight over AB 1911 underscores a growing divide in California climate politics over the future of voluntary carbon markets, as lawsuits and mounting skepticism push companies away from using offsets to support “carbon neutral” claims.
