Although there are several options for forest landowners to consider when choosing a forest carbon program, L&C Carbon’s principal focus is on U.S. based projects that meet the eligibility requirement of the California Cap and Trade program. Today, the California compliance carbon offset program provides the best market value for forest carbon offsets.
The California compliance forest carbon offset market is real and continues to grow.
California’s “Cap and Trade” program requires major carbon emitters in California to either reduce emissions or purchase carbon offsets to achieve a prescribed emissions limit. Companies required to meet the cap are currently seeking carbon offsets from across the U.S that meet requirements set by the California Air Resources Board (ARB). Demand for carbon offsets, including forestry offsets, is expected to grow rapidly.
California’s compliance carbon offset program became operational January 1, 2013 and sets a firm cap on statewide greenhouse gas (GHG) emissions. As a result, major GHG emitting sources are legally required to reduce emissions and comply with the prescribed emissions limit (cap). One way companies can partly comply is through the purchase of carbon offsets (trade). The Cap and Trade program is administered through the California Air Resources Board (ARB).
Carbon Offset Auctions
While a company can only partially fulfill compliance obligations through the purchase of offsets, demand is expected to exceed 200 million tons between now and 2020.
The state expects $1 billion in new revenue from its 2012-2013 carbon auctions. The first two auctions, held in November 2012 and February 2013, generated more than $500 million in carbon revenue. Auctions will be held quarterly through 2020.