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Carbon Offsetting in North America 101 North American Carbon World April 4, 2018
Carbon Offsetting in North America 101North American Carbon World
April 4, 2018
Forest Trends’ Ecosystem Marketplace
Thank you to our 2017 sponsors!
Outline
• Compliance Markets in North America• Current markets
• Potential upcoming markets
• Offsets in the California market
• Voluntary Offset Market Activity in North America• Issuances and retirements
• Transactions
Compliance Markets for Carbon Offsets in North America
ActiveIn development
Canada
British Columbia
Alberta
Québec and Ontario (Western Climate Initiative)
Newfoundland and Labrador
Upcoming Markets
United States
California (Western Climate Initiative)
California Cap and Trade: CA Market Cancellations
Oregon
Washington
Regional Greenhouse Gas Initiative (RGGI)
Potential Upcoming markets
Mexico
Voluntary Offset Market Activity
Offset Lifecycle
Offset Lifecycle
Voluntary Offset Projects
Number of projects that have issued offsets on the voluntary market
Timeline of Voluntary Market Issuances and Retirements: United States
-
2
4
6
8
10
12
14
16
18
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Mill
ion
s o
f tC
O2e
US IssuancesUS Retirements
Timeline of Voluntary Market Issuances and Retirements: Canada and Mexico
0
100
200
300
400
500
600
700
800
900
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Tho
usa
nd
s o
f tC
O2e
Canada IssuancesCanada Retirements
Mexico Issuances
Mexico Retirements
2017 Issuances 2017 Retirements
tCO2e
2016 Voluntary Transactions
volume
United StatesVolume: 9,981,860 tCO2eValue: $21,222,760Average price: $2.77
CanadaVolume: 113,709 tCO2e
Value: $1,142,079
Average price: $11.01
MexicoVolume: 143,490 tCO2eValue: $768,917 Average price: $5.36
value
Transactions by price (2016)
0
10
20
30
40
50
60
70
-
500
1,000
1,500
2,000
2,500
$0-1 $1-2 $2-3 $3-4 $4-5 $5-6 $6-7 $7-8 $8-9 $9-10 $10-11 $11-12 >$12
Nu
mb
er o
f Tr
ansa
ctio
ns
Vo
lum
e (t
ho
usa
nd
s o
f tC
O2
e)
Price
Volume (tCO2e) Count
Buyers’ Sectors
Public sector
Other
Private sector/for profitPrivate sector: Multinational
Private sector: Domestic
Private sector: Small-to-medium enterprise
What’s next?• Upcoming compliance markets:
• Lack of US federal action, but state and local pricing initiatives
• Canadian provinces and territories
• Mexico
• Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA)
• Voluntary markets• Initiatives encouraging deep carbon cuts,
but unclear what role offsets will play
