California Air Resources Board | Source | Download |
California's Compliance Offset Program, an integral part of the Cap-and-Trade Program, provides a crucial avenue for reducing greenhouse gas (GHG) emissions while offering flexibility and cost containment for covered entities. Administered by the California Air Resources Board (ARB), the program issues ARB Offset Credits to projects that effectively mitigate GHG emissions, helping the state achieve its ambitious climate goals.
Key Features
- Tradable Credits: Compliance offsets represent verified GHG emissions reductions or removal enhancements from sources not obligated under the Cap-and-Trade Program. These credits offer flexibility and compliance options for covered entities.
- Quantitative Usage Limits: Covered entities may use compliance offset credits to meet a percentage of their compliance obligation, with limits set for each compliance period. The program balances emission reduction targets with compliance flexibility.
- Compliance Offset Protocols: The ARB has approved various Compliance Offset Protocols, specifying guidelines for projects to generate ARB offset credits. These protocols cover a range of activities, including livestock projects, mine methane capture, and forestry initiatives.
Recommendations
- Streamlined Processes: Enhancing the efficiency of project registration and credit issuance processes will facilitate greater participation and ensure timely implementation of offset projects.
- Periodic Review: Regular review and updating of Compliance Offset Protocols are necessary to reflect evolving best practices and scientific advancements, ensuring the program's effectiveness.