California’s Air Resources Board (CARB) has announced a delay to the development of its new climate‑reporting rules. The initial rulemaking, once expected in October 2025, is now pushed to the first quarter of 2026. The agency says the postponement reflects the high volume of public feedback and continuing deliberation over which companies should be covered under the regulations.

Although the timeline for rulemaking is delayed, CARB has not yet adjusted the reporting start dates. Some companies were expected to begin reporting as soon as early 2026. Given the shift, CARB plans to exercise enforcement discretion during early reporting cycles, giving organizations a bit more leeway in complying while the rules are finalized.

These new laws, SB 253 et SB 261, signed into law in 2024, impose mandatory climate disclosures on large companies operating in California. Under SB 253, firms with over $1 billion in revenue doing business in California must report their Scope 1 and 2 emissions (direct emissions), and later, Scope 3 emissions tied to value chains. SB 261, meanwhile, applies to U.S. companies with revenues over $500 million doing business in California; these firms must disclose climate-related financial risks and their plans to mitigate or adapt to those risks.

Under the current schedule, reporting of Scope 1 and 2 emissions is set to begin in 2026, covering the previous fiscal year. Scope 3 disclosures would follow starting in 2027, and climate risk reports must be published by January 2026. CARB also released a draft reporting template to streamline Scope 1 and 2 disclosures; its use will be voluntary in the first reporting cycle, and public feedback is open until late October.

CARB’s preliminary list includes over 4,000 U.S. companies likely subject to the new rules. While other climate disclosure initiatives, such as the SEC’s proposed regulations, face growing uncertainty, California’s state regulations remain on track. The delay, though modest, underscores the complexity of operationalizing large-scale climate reporting requirements while balancing stakeholder input, enforcement fairness, and regulatory clarity.

Source :

https://www.esgtoday.com/california-delays-rulemaking-for-new-climate-reporting-regulations/