Yesterday the California Air Resources Board (CARB) delivered a total of 611,622 offsets to four offset project operators. These offsets can now be used by California compliance entities to meet their obligations under the cap-and-trade requirements of California’s Global Warming Solutions Act of 2006 (AB 32).
This is an historic accomplishment for California. Not only are these the first compliance offsets to be generated for the state’s landmark cap-and-trade program, but it sends a strong signal to compliance entities that there is supply. It also creates a win-win for developers, like U.S. farmers and ranchers, giving them the opportunity to generate a new revenue stream for their operations while helping California fight pollution in the process.
EDF looks forward to the further offset issuance from CARB. There are 62 Early Action Projects under review and we expect those credits to be issued in the upcoming weeks. In addition to Early Action Projects, offset project operators can develop projects under one of the four CARB compliance offset protocols – Forest, Urban Forest, Livestock, and ODS. This is an exciting time for the cap-and-trade program. Offsets are valuable, high quality reductions that have already been achieved. As Board Chair Nichols said “These offsets have undergone the most rigorous verification of any existing program. They achieve real greenhouse gas reductions under ARB-approved protocols, and deliver a range of additional environmental benefits."