2009.06.12 -Point Carbon-Groups finalise RGGI offset protocols Press

The following was published in Point Carbon News Carbon Markets North America, Vol 4, Issue 23, June 12, 2009. Full text of the issue is also available for download at:

http://www.pointcarbon.com/news/cmna/1.1137487

Groups finalise RGGI forestry offset
protocols

Maine officials will soon finalise three new project
blueprints to expand RGGI’s offset programme.

The Maine Forest Service, the Maine Department of
Environmental Protection and Environment Northeast are
some of the groups that have developed recommendations
for new forestry offset categories to be included in the
Regional Greenhouse Gas Initiative (RGGI).

Maine’s recommendations are for forest management,
avoided deforestation and urban and community forestry
offset types.

RGGI currently allows for fi ve types of offset projects:
energy effi ciency improvements; afforestation; landfi ll gas
capture; agricultural methane capture; and reducing sulfur
hexafluoride from electric transmission and distribution.

“We are working on sending final draft recommendations
to the RGGI working group in the next week or two,” said
Ellen Hawes, a forestry policy analyst for Environment
Northeast.

Project development has been slow in the RGGI region
because of restrictions placed on offset use. Covered
entities under RGGI can expand their use of offsets to 5
per cent of their compliance obligation from an initial 3.3
per cent if the average price of allowances over 12 months
is equal to, or more than $7.

If the price reaches $10, emitters can use offsets to satisfy
10 per cent of their compliance obligation. Allowances
have not exceeded $7 since they started trading on the
Chicago Climate Futures Exchange last August.