ARB to discuss addition of cement importers for second cap-and-trade compliance period

January 23, 2014 by CaliforniaCarbon.info

CaliforniaCarbon.info, 23 January 2014: California Air Resources Board is set to discuss a mechanism to include cement importers under the cap-and-trade program. The board has scheduled a public meeting to discuss various aspects of a potential methodology to implement cap-and-trade obligations on entities importing cement in the state.

The methodology is expected to be similar to the one in place for in-state cement manufacturers which also receive free allowance allocation. In 2014, the board will provide over 6.8 million emission allowances for free to eight in-state cement manufacturers in 2014.

The board will discuss the scope and applicability of a border adjustment mechanism to be implemented on the appropriate entities. The implementation of such a mechanism may be welcomed by the in-state manufacturers who are already covered under the cap-and-trade program.

Cement manufacturing is a crucial sector under the state’s cap-and-trade program, representing about 4 per cent of the total emissions covered under the first compliance period. According to an exploratory analysis of the in-state cement manufacturing sector’s emissions, CaliforniaCarbon.info found that they could increase from 7 million metric tons of CO2e in 2012 to about 10 million metric tons of CO2e by 2020 if the state economy grows at a real GDP growth rate of 1.5 per cent. The emissions could increase to as much as 13.5 million metric tons of CO2e if the real GDP were to grow at a rate of 3.5 per cent till 2020.

For more information about this article, mail to: contact@californiacarbon.info

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