Japanese insurance company Nipponkoa just announced carbon neutrality for FY2012, purchasing 50,000 tonnes of carbon dioxide equivalent (tCO2e) in offsets. Meanwhile, Seattle City Light, the first carbon-neutral public utility in the US, is feeling climate change’s heat as the snowpack that feeds their hydroelectric dams melts off earlier; they purchase 100,000 to 300,000 tCO2e in offsets a year.
This article was originally published in the V-Carbon newsletter. Click here to read the original.
16 October 2013 | Many advocates of Reducing Emissions from Deforestation and forest Degradation (REDD) projects have been looking hopefully towards the California cap-and-trade market as a source of offset demand from compliance entities. But those
“We have an MOU [memorandum of understanding] to observe development of sector-based projects in Chiapas and Acre, but no agreement to accept those projects,” said Dave Clegern, a spokesman for the California Air Resources Board (ARB), referring to California’s potential linkages with states in Mexico and Brazil to source REDD credits. The ARB does not yet have a REDD rulemaking scheduled.
In February, California State Senator Ricardo Lara introduced a bill to restrict eligible offsets to those originating in the US and possibly Quebec. The bill did not pass the Assembly before the end of this year’s legislative session but could be reconsidered next year.
International offsets are limited to 2% of a regulated entity’s compliance obligation, anyway, increasing to just 4% in the third compliance period (2018–2020). And despite the safeguards proposed by the REDD Offsets Working (ROW) Group, REDD credits face opposition by a subset of environmental and indigenous groups, causing some to wonder if the uphill battle is simply too steep.
For now, California is focusing on domestic projects (it just issued its first tonnes) and on its recent agreement to link its cap-and-trade program with Quebec’s under the Western Climate Initiative (WCI) starting in January 2014. Read Ecosystem Marketplace’s coverage of REDD in California
Here at Ecosystem Marketplace, we are busy writing this year’s State of the Forest Carbon Markets report based on data we collected from suppliers all over the world. Stay tuned for details to come on the launch!
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