4 new carbon credit projects listed in California
The California Air Resources Board (ARB) listed four new carbon credit projects that plan to supply the state’s carbon market.
On the first Wednesday of each month the ARB publishes a list of carbon credit projects that have submitted documentation to transfer over the California compliance market.
This month saw one Forestry, one Livestock, and two Ozone Depleting Substance (ODS) carbon credit projects added to the list.
Before being issued credits the projects must undergo a desk review to ensure that they were conducted in accordance with their respective protocols.
Carbon credits are expected to be an important cost-containment mechanism as regulated companies begin to face new emission requirements.
Large emitters can purchase carbon credits to account for up to 8% of their annual emissions, creating a potential demand for 28 million carbon credits between 2013 and 2014.
However, with only four project types approved by the ARB, a significant shortfall is expected.
A study conducted by the American Carbon Registry, an ARB-approved Offset Project Registry, showed that unless additional project protocols are adopted the supply of carbon credits could fall short by as much as 67% between 2018 and 2020.
Forestry projects are expected to provide the bulk of carbon credits, since they sequester hundreds of millions of tonnes of carbon dioxide.