Stay Ahead: Navigate Policies, Regulations & Standards with Confidence

The Mandatory Greenhouse Gas Reporting Regulation (MRR) in California requires facilities that emit greenhouse gases (GHGs) above a certain threshold to annually report their emissions to the California Air Resources Board (CARB). The MRR was established under the California Global Warming Solutions Act (AB 32) of 2006. Covered entities must follow strict monitoring, reporting, and verification protocols to ensure data accuracy. The regulation applies to a range of high-emitting sectors, including industrial facilities, power plants, and fuel suppliers.

The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), developed by the International Civil Aviation Organization (ICAO), is a global market-based measure aimed at addressing the growth in greenhouse gas (GHG) emissions from international aviation. Established in 2016, CORSIA requires airlines to monitor, report, and offset their CO2 emissions. The scheme applies to airline operators conducting international flights that emit more than 10,000 metric tons of carbon annually. Airlines must submit verified emissions data annually, and noncompliance can result in penalties enforced by national authorities, including fines.

The Energy Efficiency Existing Ship Index (EEXI) and Carbon Intensity Indicator (CII) regulations, introduced by the International Maritime Organization (IMO), are key parts of the global strategy to reduce greenhouse gas (GHG) emissions from the shipping industry. The EEXI sets a mandatory energy efficiency standard for existing ships, requiring technical modifications to meet specific emissions thresholds, while the CII measures a ship’s operational carbon intensity annually, assigning a rating from A (best) to E (worst) to encourage continuous improvement. These regulations apply to nearly all commercial ships over 400 gross tonnage engaged in international voyages, affecting over 60,000 vessels worldwide. Compliance with EEXI began in 2023, and CII ratings are enforced from 2023 onward. Together, EEXI and CII aim to enhance the energy efficiency and environmental performance of the global shipping fleet, supporting the IMO’s goal of reducing GHG emissions by at least 50% by 2050.

Canada's Standard on the Disclosure of Greenhouse Gas Emissions and the Setting of Reduction Targets mandates that, effective April 1, 2023, federal departments and agencies require suppliers bidding on contracts valued at $25 million or more to disclose their greenhouse gas (GHG) emissions and establish reduction targets. This initiative, part of the Greening Government Strategy, aims to integrate environmental considerations into procurement processes, thereby encouraging suppliers to actively manage and reduce their GHG emissions. By implementing this Standard, the Government of Canada seeks to leverage its purchasing power to promote sustainability and progress toward national climate objectives.

Guideline B-15: Climate Risk Management, introduced by Canada’s Office of the Superintendent of Financial Institutions (OSFI) in March 2023, mandates federally regulated financial institutions (FRFIs) to disclose and manage climate-related risks and greenhouse gas (GHG) emissions. Starting in 2024, affected institutions, including major banks and insurers, must report on Scope 1, Scope 2, and Scope 3 emissions. The guideline aims to enhance transparency, ensure financial resilience, and support Canada’s transition to a net-zero economy in line broader national climate strategies.

The California Low Carbon Fuel Standard (LCFS) is a market-based program launched in 2011 and administered by the California Air Resources Board (CARB) to reduce greenhouse gas emissions from transportation fuels. It sets progressively lower carbon intensity (CI) targets, encouraging fuel producers to adopt cleaner technologies. Among other requirements, affected entities must report their emissions quarterly and annually through the LCFS Reporting Tool and Credit Bank & Transfer System (LRT-CBTS), with compliance verified through CARB-approved methods. The program applies to entities including refiners, biofuel producers, and electricity suppliers.

The Section 45Q Tax Credit is a federal tax policy in the United States designed to incentivize carbon capture, utilization, and storage (CCUS) by providing tax credits to facilities that capture and either permanently store or use carbon oxides in industrial processes. Established under the Energy Improvement and Extension Act of 2008 and expanded by the Bipartisan Budget Act of 2018 and the Inflation Reduction Act of 2022, the credit offers financial incentives per metric ton of carbon dioxide captured. The credit applies to industrial and power plants, as well as direct air capture facilities, helping reduce greenhouse gas emissions and drive investment in clean energy technologies.

Canada's Greenhouse Gas Reporting Program (GHGRP), administered by Environment and Climate Change Canada (ECCC), requires industrial facilities emitting 10,000 tonnes or more of CO₂ equivalent annually to submit verifiable emissions data by June 1 each year. Established in 2004 under the Canadian Environmental Protection Act (CEPA), the program enforces standardized reporting across sectors like oil/gas, manufacturing, and power generation through the Greenhouse Gas Reporting Program Regulations. The GHGRP supports Canada's climate commitments by providing transparent, auditable emissions data for policy development and regulatory enforcement.

Local Law 97 (LL97) requires New York City buildings over 25,000 square feet to both report and reduce their carbon emissions. Starting in 2025, affected properties must submit annual emissions reports through the Department of Buildings portal, disclosing both direct fuel use (Scope 1) and purchased energy (Scope 2). Simultaneously, the law establishes progressively stricter emissions limits through 2050, with targets tailored to different building types. Non-compliant buildings face penalties of $268 per excess metric ton, creating strong financial incentives for owners to implement energy efficiency upgrades, electrify systems, and adopt renewable energy solutions.

The Sustainable Finance Disclosure Regulation (SFDR) is an EU regulation designed to enhance transparency in sustainable investing by requiring financial market participants and advisors to disclose how they integrate environmental, social, and governance (ESG) factors into their decision-making. The SFDR requires financial market participants and advisors to disclose how they consider sustainability risk. Affected firms must report the principal adverse impacts (PAIs) of their investments, including greenhouse gas (GHG) emissions, carbon footprint, and exposure to fossil fuels. SFDR applies to asset managers, pension funds, insurers, and financial advisors, categorizing funds under Article 6, 8, and 9 based on their sustainability commitments. The regulation aims to prevent greenwashing and align financial flows with the EU’s climate goals.