Concerns Over Greenhouse Gas Protocol Regulations
Chairman of the House Energy and Commerce Committee, Brett Guthrie (R-Ky.), expressed to Breitbart News that the Greenhouse Gas Protocol is being exploited to enforce drastic environmental standards on Americans, which he argues will lead to increased costs.
Guthrie commented, “The Greenhouse Gas Protocol is essentially a backdoor mechanism for unaccountable bureaucrats and leftist groups to impose extreme environmental regulations on U.S. companies. While California has already established stringent climate change disclosure rules, these new proposals could set nationwide standards. Instead of stimulating investment in new technologies and innovation, they will likely expand bureaucracy and raise costs, putting American companies at a competitive disadvantage.”
The Greenhouse Gas Protocol (GHG Protocol) serves as an internationally recognized standard for organizations to assess and manage their greenhouse gas emissions. It’s a collaborative venture between the World Resources Institute and the World Business Council for Sustainable Development, designed for corporate accounting and source-based emissions reporting across three scopes.
Guthrie’s reservations about the Greenhouse Gas Protocol are echoed by others. The National Association of Manufacturers (NAM) has called on the GHG Protocol to adopt a “more balanced” approach, one that could promote economic growth while still aiming for lower emissions.
In California, the Air Resources Board (CARB) is in charge of enforcing climate laws SB-253 and SB-261. Major corporations operating there will need to report their emissions as per the GHG Protocol’s guidelines.
The Banking Policy Institute (BPI) submitted comments regarding California’s reporting requirements earlier this year. They noted that while the proposed regulations set a reporting deadline of August 10, 2026, there are ongoing concerns about the complexities surrounding GHG emissions reporting, mainly regarding Scope 3 emissions and necessary assurances.
California’s stringent regulations, including CARB’s cap-and-invest program which controls greenhouse gas emissions, are prompting energy companies such as Chevron and Phillips 66 to exit California and relocate to states with more lenient regulations.
PBF Energy even warned that if CARB’s amendments are implemented as currently drafted, refiners could see the state’s refining capacity decline to zero.
This situation has led Senator Cynthia Lummis (R-Wyo.) to criticize California’s Governor Gavin Newsom (D-Calif.), claiming his policies indicate he would not be fit for a presidential role. She stated, “This demonstrates that Newsom truly does not grasp economics and would be a disastrous president.”
Yet, she also remarked, “When I visit California, it feels like one of the most stunning and diverse places on earth, but sadly, it’s on a path of self-destruction.”
