California Aims to Become Major Carbon Trading Center

Date: November 7, 2008

Source: News Room

Officials with the California Climate Action Registry (CCAR) which verifies the legitimacy of greenhouse gas (GHG) "offset" projects, want to jumpstart their program by linking to a major commodities exchange, a move that could establish it as a leading carbon-trading center under future Western or federal mandatory climate change programs. Through the application of a set of stringent project protocols, the registry provides a "seal of approval" to offset projects which enhances the validity and viability of the market.

CCAR is already closely tied to the California Air Resources Board (CARB), which is implementing the state's sweeping mandatory climate change program under the 2006 law AB 32. This plan includes dozens of regulations, market-based measures and incentive programs to reduce the state's GHG emissions to 1990 levels by 2020. About 20% of the emission reductions are proposed to come from a GHG cap-and-trade program implemented at the regional level. This regional program is known as the Western Climate Initiative (WCI), which includes seven western states and four Canadian provinces.

Sign up to receive our free Weekly News Bulletin