What's Happening Outside the Cap: Update on the Role of Offset Credits in Achieving AB 32's Goals
The California Air Resources Board (ARB) has adopted five offset protocols and issued over 16 million credits to date, most of which are trading at only a fraction less than allowance prices. And while compliance entities can use offsets for only 8% of their obligation under the Cap-and-Trade Program, if fully utilized, that would amount to nearly half of the reductions to be achieved by the program. But in the face of a decision by ARB regarding invalidation of offsets resulting from the destruction of ozone-depleting substances (ODS) at Clean Harbors' El Dorado, Arkansas hazardous waste disposal facility, there is a great deal of uncertainty in the offsets market. This panel, featuring offset project developers and market participants will explore several key questions concerning the future of offsets in ARB's program:
- How should the risk of invalidation inform compliance entities' procurement decisions?
- Do different offset products carry different risks?
- What offset protocols are on the horizon and how might they influence the overall supply/demand?
- Is there a place for international (REDD+) offsets in California's program?
- What impact could federal GHG reduction efforts have on the role of offsets in California's program?
- Jeff Cohen, Co-founder & SVP of Standards and Policy, EOS Climate
- Lenny Hochschild, Managing Director, Evolution Markets
- Joe Madden, Co-founder & Chief Bus Dev Officer, EOS Climate
- Kevin Poloncarz, Paul Hastings LLP