If you work in sustainability or finance, you’ve probably felt the shift this year. Climate disclosure has moved from a compliance checkbox to a strategic priority. Carbon accounting, the backbone of credible disclosure, is no longer a niche exercise; it’s becoming integral to corporate reporting.
From regulatory shake-ups to technical overhauls, 2025 saw changes that will define climate disclosure for years to come. In this blog, we’ll explore the biggest shifts, the technical updates behind them, and what’s next.
Regulatory shake-ups
Major regulatory changes across key markets occurred this year, redefining disclosure obligations and timelines. Here’s what changed and why it matters.
California SB 253 & SB 261
Draft templates and FAQs were released in late 2025, confirming that businesses need to act now. However, implementation is currently paused following a U.S. court decision in November 2025, pending resolution of legal challenges. Companies should still prepare and make sure they understand what California’s disclosure laws mean for their business - delays don’t mean cancellation.
EU CSRD simplification
Europe’s Corporate Sustainability Reporting Directive (CSRD) got a major overhaul in 2025 through the Omnibus simplification package. The goal is to reduce administrative burden and keep EU firms competitive globally. The scope narrowed to only the largest companies with more than 1,750 employees and €450 million turnover, while voluntary standards remain for smaller firms. Sector-specific standards became optional, and transition plan requirements were dropped. Wave 2 reporting was pushed to 2028, but Wave 1 reports for FY2024 are still due this year.
Australia disclosures go live
Australia introduced a new mandatory climate disclosure regime on January 1, 2025, under the Australian Sustainability Reporting Standards (ASRS). This framework aligns closely with ISSB’s global baseline and sets out requirements for climate-related risk and emissions reporting. For the first year, Scope 3 disclosures are deferred, and assurance obligations will be phased in later.
SEC climate rule in limbo
In the U.S., the SEC’s climate disclosure rule remains stalled after legal challenges. The agency withdrew its defense in March 2025, leaving future enforcement uncertain. Still, many companies are moving ahead voluntarily to stay ahead of investor expectations.
Key takeaway: While some rules were simplified or delayed, these moves could be temporary. Businesses should prepare for stricter requirements ahead.
Global frameworks gain momentum
Beyond national regulations, global standards advanced rapidly in 2025, pushing toward harmonized sustainability reporting.
ISSB standards
The International Sustainability Standards Board (ISSB) continued its push for a global baseline. IFRS S2 now makes Scope 3 disclosure mandatory and requires scenario-based risk analysis. Adoption is accelerating with 16 jurisdictions already committed to ISSB standards.
Voluntary Carbon Market Integrity (VCMI)
Integrity initiatives like Integrity Council for the Voluntary Carbon Market (ICVCM) and VCMI gained traction in 2025, setting higher standards for carbon credits. Blockchain-based registries and tokenized credits are emerging, while Article 6 of the Paris Agreement moves closer to full implementation, enabling cross-border carbon trading.
Science-Based Targets initiative (SBTi)
SBTi released draft updates to its Corporate Net Zero Standard in 2025, signaling a shift toward more practical and flexible target-setting. Proposed changes include stricter Scope 2 requirements, clearer pathways for Scope 3, mandatory transition plans, and recognition of carbon removals and beyond value chain mitigation. The final standard is expected in late 2026, with mandatory adoption for new targets starting in 2028.
Key takeaway: Global standards are tightening. Businesses should align with ISSB and prepare for stricter Scope 3 and net-zero requirements.
Technical overhauls
Carbon accounting methodologies have evolved significantly, introducing new rigor and complexity. These changes will impact how companies measure and report emissions.
GHG Protocol updates
The Greenhouse Gas Protocol released a draft update introducing hourly matching and deliverability criteria for renewable energy claims. This means companies will need to prove that renewable energy was generated in the same hour as it was consumed. Other proposals include exemptions for certain companies, legacy clauses to protect previous investments, and phased implementation. Consultation runs until December 2025, with final rules expected in 2027.
Another big change is that Energy Attribute Certificates (EACs) must come from the same grid or market region as the electricity consumption, i.e., no more global certificates for local claims.
ISO–GHG Protocol partnership
In September 2025, ISO and the GHG Protocol announced plans to harmonize their standards. The goal is a unified global framework for corporate, product, and project-level carbon accounting. Expect draft guidance and MRV tools to start in 2026.
Key takeaway: Carbon accounting rules are getting stricter. Companies should prepare for hourly matching, local energy attribute certificates, and upcoming ISO–GHG harmonization.
New market entrants: Carbon Measures and Carbon Commons
In 2025, a coalition of major industrial and energy players launched Carbon Measures↗, aiming to create a global carbon accounting framework that addresses some issues with current frameworks. The initiative focuses on applying financial-grade rigor to emissions data and setting carbon intensity benchmarks for key materials like steel, cement, and fuels, helping eliminate double-counting and improve transparency across supply chains.
Carbon Commons↗, a new open-source framework launched in 2025, aims to standardize Scope 3 emissions measurement for businesses. It provides a unified methodology and thousands of emissions intensity factors, helping organizations simplify supply chain reporting, reduce inconsistencies, and unlock opportunities like green finance.
What’s next in 2026?
2026 won’t slow down; expect even more complexity and new standards on the horizon. Here’s what to watch:
- California deadlines: Climate risk reports due January; Scope 1 & 2 reporting starts mid-year.
- GHG Protocol: Expect further development of the hourly matching proposals and broader revisions.
- ISSB expands into nature-related disclosures, with biodiversity risk drafts expected in October.
- ISO–GHG Protocol harmonization roadmap kicks off, aiming for unified standards by 2028.
- UN Article 6.4 carbon market becomes operational, reshaping voluntary credit trading.
What this means for business
Carbon accounting is no longer optional. It’s becoming a regulated, standardized, and highly scrutinized part of corporate reporting. For businesses, this means:
- More transparency: Investors and regulators expect detailed, credible data.
- More complexity: New methodologies like hourly matching and Scope 3 requirements add layers of work.
- More opportunity: Companies that act early can build trust, attract capital, and lead in sustainability.
Get ahead of climate disclosure changes with World Kinect
If your organization hasn’t started aligning with these changes, now is the time. The cost of waiting is rising, and so is the value of getting ahead.
World Kinect offers expert solutions to simplify compliance, integrate carbon accounting into your reporting workflows, and stay ahead of evolving standards.
