Carbon Offsets Daily

Carbon Offsets Daily : When do you think the domestic voluntary carbon market will become a compliance market and how will that change affect the environment?

: A compliance market will probably be in place within three years, but as far as I’m concerned it can’t happen quickly enough.  Both presumptive presidential candidates have expressed support for one, and I think congress finally has enough awareness of the issue that legislation to create one has a realistic chance of passing—though if this past week is any indication, Republicans will do their best to hold it up, or at least water it down.   

A compliance market is unlikely to replace the domestic voluntary market, since it will only affect carbon-intensive industries: power utilities, refineries, factories, etc.  Even in Europe, which is years ahead of the U.S. in regulating carbon, the carbon market for individuals and non-carbon-intensive businesses (like ) is still voluntary.  Though a committee of the British Parliament , I think the challenges to implementing such a system are formidable, and it’s even less likely to happen in the U.S. than the U.K.

The effect of a compliance market will be to raise the price of carbon for everyone, since there will be increased demand for credits from offset projects.  This is a win for the environment.  Putting a price on carbon will force businesses to reduce their carbon emissions through greater efficiency and through buying carbon credits, that is, supporting renewable energy and reforestation.

William Bert
Communications Specialist