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 Im concerned it cant 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 passingthough 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 its
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
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