CO2 Market Improves In California

Offsets Issued & Auctions Upheld

The “cap-and-trade” system enacted under California’s Global Warming Solution Act of 2006 (“AB 32”) aims to reduce greenhouse gas (“GHG”) emissions in that state to 1990 levels by the year 2020.

Two developments in the last month have moved the cap-and-trade system closer to becoming fully operational.

First, the California Air Resources Board issued the first “compliance grade” offsets for forestry projects, establishing a market for offsets derived from the forestry industry (including out-of-state projects).

Second, a California trial court rejected a challenge to CARB’s carbon allowance auction program.  (More at Marten Law, 12/1/2013)