The Department of Environmental Conservation (DEC) in New York has unveiled a new draft regulation for reporting greenhouse gas emissions. The draft proposes to mandate GHG emissions reporting from some significant emitters, with the deadline to begin in 2027 based on the data from the previous year (2026). Private market firms, asset managers, and impact investors with large portfolio companies in New York should consider this draft, as they may need to comply with the new rules if the draft is approved. 

“The proposed Reporting Rule will enable us to collect the information necessary to develop effective strategies that reduce harmful air pollution and direct investments where they are most needed while also protecting New York’s consumers and economic competitiveness.” Amanda Lefton, DEC Commissioner. 

Let’s explore the draft about GHG emissions in detail. 

Key aspects of the Mandatory Greenhouse Gas Reporting Program 

• The draft needs entities emitting more than 10,000 metric tons or more of CO2 that is equivalent annually to report their emissions. This includes power plants, waste incinerators, agricultural distributors, landfills, natural gas compressor stations, anaerobic digestion facilities, and fuel suppliers to reduce GHG emissions. 
• The proposal lays the groundwork for New York’s upcoming cap-and-invest system. This program will place a cap on statewide emissions and require large emitters to purchase allowances for their emissions. Proceeds from this system, expected to generate over $1 billion annually, will fund clean energy initiatives and support vulnerable communities.
• The proposed regulation aims to fill gaps in emissions data left by federal rollbacks, inform strategies for reducing air pollution and direct investments effectively, and support the climate goal of New York. 
• The rules on the draft are designed solely for data collection and do not require any facilities to reduce emissions or purchase any allowances. 

Next steps

The reporting date for companies begins in June 2027 to cover the data from the previous year. However, the draft has not yet been finalized; DEC is accepting feedback from the public, stakeholders, and businesses on the proposal until July 1, 2025. 

While you’re here…

Professionals in private markets and asset management firms use Auquan's AI agents to automate research and monitoring for deal sourcing, borrow screens and due diligence, risk monitoring, sustainability, and compliance workflows.

Using advanced AI techniques, Auquan generates material insights on any company or issuer worldwide — public or private — instantaneously, tailored for your workflow. 

Let's explore how Auquan can help you and your team eliminate tedious and time-consuming manual data work and focus more on what you do best.