California Air Resources Board (CARB) Mary Nichols spoke of California’s new cap-and-trade program at the sixth annual VerdeXchange conference. This program is aimed at cutting the state’s greenhouse gas emissions by providing a market mechanism allowing emitters to buy offsets and emission permissions and to also sell them if they switch to using renewables. This program places a hard cap on emissions that will ratchet down over time. CARB now has an electronic auction platform which will take place in late February, and will be offering 12,924,822 GHG allowances for sale. There have also been purchase limits developed to regulate the number of allowances one entity may purchase from the share of allowances sold at a quarterly auction. Companies subject to this program will also be able to achieve compliance through the purchase of offsets approved under protocols that California developed. California is determined for this cap-and-trade program to be successful, which will be greatly affected by remaining strict legislation on accounting standards.
Source: greentechmedia. CARB Chair Mary Nichols on Carbon Trading