Carbon Registry approving California offsets

One of the major Carbon Registries in the voluntary offset market has announced that it will be accepting California Air Resources Board (ARB) approved offset projects.

Currently the Registry is undergoing the ARB’s application process to ensure that all carbon projects will be generating offsets in accordance with ARB regulations.

So far the ARB has approved four project protocols to supply offsets for the California carbon market including Forestry, Urban Forestry, Livestock, and destruction of Ozone Depleting Substances (ODS).

Under ARB guidelines, regulated emitters will be able to purchase carbon offset credits to meet up to 8% of their reduction target. This comes out to a demand for over 10 million carbon offset credits annually through 2020.

However many market analysts have expressed concern over a lack of carbon offset supply. Some reports even predict a shortfall of nearly 50%.

Some groups have lobbied for the addition of other project types, such as Rice Farm Management, to bolster the supply of offset credits, but ARB chair Mary Nichols has insisted that they will stick with their four protocols for the near future.

The California carbon market will hold its first carbon allowance auction this November ahead of the market launch in January 2013.