A California fiscal committee has shelved AB 1911, a bill that would have protected companies from greenwashing lawsuits if they used verified carbon offsets. The decision leaves businesses vulnerable to litigation over carbon neutral claims despite using regulator approved credits. This legislative setback highlights the growing tension in California over the reliability of voluntary carbon markets and the legal risks associated with corporate climate claims.
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This is a classic case of policy intent failing at the implementation stage. The bill tried to create a safe harbor for buyers, but the committee is clearly not convinced that verification alone removes the risk of misleading the public.
Basically, if you call yourself carbon neutral using offsets, you are on your own legally. Not a great look for people trying to fund actual projects.
The real issue here is the lack of a standardized definition for what a verified credit actually represents in terms of permanent removal. Without that, no amount of legal protection will stop the lawsuits.
