Electric utility requesting California carbon offsets
On Monday Pacific Gas & Electric (PG&E), one of the major energy providers in California, announced that it will release a Request for Offers for California carbon offsets later this month.
As a business responsible for emitting over 25,000 tonnes of carbon dioxide equivalent annually, PG&E will be required to account for its emissions as part of the California compliance carbon market.
So far PG&E has participated in the state’s past two carbon allowance auctions, but clearly the large electric utility hopes to take advantage of the cost savings offered by California carbon offsets.
The Air Resources Board has approved four project types to generate compliance-grade California carbon offsets for use in the mandatory market.
These projects, including Forestry and Livestock Methane Capture, quantify and verify tonnes of carbon dioxide that are kept from being released into the atmosphere.
Last year a deal for 100,000 California carbon offsets was reported for $11 apiece.
However a study conducted by the American Carbon Registry reported that there will be a significant shortfall in the supply of California carbon offsets should regulated businesses purchase all the California carbon offsets that they are allowed to.
At last month’s carbon auction, allowances reached a settlement price of $13.62, so businesses are likely to buy as many California carbon offsets as they can.