WCI lays out carbon trade rules

subscribe

Members of the Western Climate Initiative laid out some of the ground rules on the use and timing of carbon-offset credits allowed under its planned emission cap-and-trade system.

The seven western U.S. states and four Canadian provinces have decided to stay with a plan laid out last year that would limit use of offset credits and allowances to no more than 49 percent of emission reductions.

The offset limit will be calculated as a percentage of compliance to allow the WCI to be more easily linked with other trading systems, such as one now under way in the Eastern United States, an official of the group said.

Offsets are credits for projects or technology, such as tree planting, that reduce greenhouse gas emissions. Emitters such as power plants can buy offsets to meet the requirements on cutting emissions blamed for climate change.

The use of offsets is among the many details the WCI is working on for the trading system, which is set to launch in 2012 and is designed to meet a goal of cutting greenhouse gas emissions to 15 percent below 2005 levels by 2020.

The recommendations endorsed by the WCI in Vancouver, but not made public until just recently, will now be adopted by each of the jurisdictions as they draft their regulations.

The WCI said placing limits on the use of offsets would be easier to administer, and it rejected suggestions the offset limit be adjusted annually to allow for a carry-over of unused offsets, saying that would make it too complex.

In addition to California — which has the eighth largest economy in the world — the WCI's members are: Arizona, New Mexico, British Columbia, Oregon, Ontario, Montana, Utah, Washington, Quebec, and Manitoba.

Not all of the members expect to be ready when the trading system starts in 2012.

Related News

california impending shortage

California's Next Electricity Headache Is a Looming Shortage

LOS ANGELES - As if California doesn’t have enough problems with its electric service, now regulators warn the state may be short on power supplies by 2021 if utilities don’t start lining up new resources now.

In the hopes of heading off a shortfall, the California Public Utilities Commission has ordered the state’s electricity providers to secure 3.3 additional gigawatts of reserve supplies. That’s enough to power roughly 2.5 million homes. Half of it must be in place by 2021 and the rest by August 2023.

The move comes as California is already struggling to accommodate increasingly large amounts of…

READ MORE

Group to create Canadian cyber standards for electricity sector IoT devices

READ MORE

wind power jobs

Leading Offshore Wind Conference to Launch National Job Fair

READ MORE

opg and tva

OPG, TVA Partner on New Nuclear Technology Development

READ MORE

power tower

California Considers Revamping Electricity Rates in Bid to Clean the Grid

READ MORE