Understanding carbon offsets. Max DuBuisson March 13, 2018

Transcription

1 Understanding carbon offsets Max DuBuisson March 13, 2018

2 What is the Climate Action Reserve? CLIMATE ACTION RESERVE Nonprofit, founded 2001 Voluntary carbon offset registry California compliance Offset Project Registry Develop standardized carbon offset protocols GHG policy support

3 What are carbon offsets? CO 2 CH 4 N 2 O CFCs GHG Emission reductions in unregulated sectors with barriers to adoption 1 CRT = 1 mtco 2 e 3

4 How are offsets generated? The Reserve develops standardized offset protocols (methodologies) Include government, industry, academia, and technical stakeholders, plus public comment Project development Public listing Third-party verification Registry review Repeat CRT issuance & trading Land use Agriculture Industrial sources Organic waste Forest * Livestock manure * Mine methane Landfill gas * Urban forest Fertilizer management Boiler efficiency ^ Composting Grassland Rice cultivation Ozone depleting substances + Anaerobic digestion Nitric acid production * US & MX ^ MX only + US, MX, and Article 5 countries 4

5 Offset quality REAL ADDITIONAL PERMANENT GHG accounting is conservative, comprehensive, and scientifically credible GHG reductions would not have occurred in the absence of the carbon market incentive GHG reductions or removals persist for at least 100 years, accounting for any reversals VERIFIED Ex-post third-party verification prior to credit issuance OWNED UNAMBIGUOUSLY No other parties may reasonably claim ownership of GHG reductions resulting from project 5

6 Example: landfill gas Organic waste breaks down in landfills and generates methane (CH 4 ) Very large landfills are regulated by the EPA States or localities may have stricter landfill CH 4 regulations Unregulated landfills face little incentive to control CH 4 emissions Smaller landfills don t benefit as much from renewable power incentives Additionality considers legal mandates, landfill size, precipitation, and other incentives Must install a gas collection and control system (GCCS), with metering for gas flow and methane content Project data are verified annually prior to credit issuance Projects are eligible for 10 years, renewable once 6

7 Public registry Public information: Project details Project status Registry account holders Credit serial numbers Credit issuance Credit retirements (usage) Listing and verification documents 7

8 How to use offsets 1. Measure your GHG footprint 2. Reduce your emissions to the extent feasible 3. Procure electricity from zero-carbon sources 4. Offset the rest a) Demand registered credits b) Determine contract terms c) Credit retirement d) Track the serial numbers e) Repeat 8

9 Carbon markets VOLUNTARY COMPLIANCE SOMETHING ELSE Corporations and individuals choosing to offset emissions for their own goals Airport Carbon Accreditation DFW, ATL United Airlines Eco- Skies Sub-national programs Western Climate Initiative California Quebec Ontario Regional Greenhouse Gas Initiative (RGGI) European Emissions Trading System (EU ETS) ICAO Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) UNFCCC Paris Agreement 9

10 Voluntary markets Average price: $3 Source: Forest Trends Ecosystem Marketplace State of the Voluntary Carbon Markets

11 Voluntary CRT retirements Corporate Sustainability Retail Programs DFW Airport ATL Airport UPS Chevrolet C&S Aviation United Airlines EcoSkies 21 st Century Fox CB Richard Ellis, Inc. Citigroup Kohl s Walt Disney Company Adobe Systems NYSE Group, Inc. Live Nation ESPN Interface Carpets TransAlta Corp. Salesforce SFO Kiosks TerraPass Green-e Climate Colorado Carbon Fund ClimateSmart (PG&E) NW Natural Green Mountain Energy Just Energy Income Fund XOOM Energy 11

12 ICAO CORSIA Who? Aeroplane operators with international routes between participating States What? All emissions above 2020 baseline When? Phases start 2021 How? Approved emission reduction units 12

13 Recap of important questions Do offsets expire? [no] Does vintage year matter? [maybe] What carbon claims can I make when using offsets? [tco 2 e reduced] Can a REC be converted into an offset? [no] Who owns the environmental attributes (emission reductions)? [you] What is additionality? [beyond BAU] What other environmental attributes are included? [officially, none] 13

14 Max DuBuisson (213)

15 Additional slides APPENDIX

16 Serialized credits Climate Action Reserve United States Project type (landfill gas) Texas Batch CAR-1-US TX to Climate Reserve Tonnes Project ID (CAR439) Project developer ID Vintage year Serial number block 16