Offset Scorecard: ARB awards 416,428 offsets with ODS projects dominating the latest issuances

March 28, 2016 by Rohan Nongpiur

CaliforniaCarbon.info, March 28, 2016: Last week, The California Air Resources Board (CARB) issued 416,428 California carbon offsets (CCOs), taking the total CCO count to 38.85 million. A further 100,534 CCO-8s also saw conversions to CCO-3s – the lowest number witnessed since September, 2015. The CCO-3 count now stands at 6.58 million.

Around 377,295 (91%) of the CCOs issued were distributed across 3 ODS projects that used the destruction facility in Bowling Green, Ohio. Out of these 3 projects, the AGAS Americas 2015-2 (CAR1179) project saw the highest issuance with 135,577 CCOs awarded for a December 2014 to July 2015 reporting period. The other 2 projects were registered under the American Carbon Registry and were listed more recently. These consisted of EOS ACR 271 (ACR271) which saw 124,882 CCOs and Wabashco Clean Sweep 7 (ACR275), which was assigned 116,836 CCOs.

3 livestock methane projects, 2 managed by ClimeCo and the other other managed by Origin Climate gained a combined 31,820 CCOs. ClimeCo’s T&M Bos Dairy (CAR1055) and T&M Hidden View Dairy (CAR1057) each were awarded 4,377 and 8,823 CCOs respectively, for reporting periods spanning the 2014 calendar year. Meanwhile, Origin Climate’s Dairy Dreams Methane Reduction Project (CAR1097) saw 18,620 CCOs issued to its 2015 reporting period.

Furthermore, the above livestock projects managed CCO-3 conversions for earlier reporting periods and early action versions of the projects. CAR1055 and CAR1057 reporting periods spanning the 2013 calendar year , witnessed 10,993 and 14,031 CCO-3 conversions respectively. Under early action, Bos Dairy (CAR440) saw 4,077 CCO-8s convert to CCO-3s over 2 reporting periods, while Hidden View Dairy (CAR489) managed 36,370 CCO-3 conversions over 3 reporting periods. Meanwhile, Origin Climate’s Dairy Dreams (CAR994) saw 34,703 across 4 reporting periods under early action.

To round up the issuances, Blue Source – Pungo River Forest Conservation Project (CAR659) obtained a total of 7,313 CCOs (1,528 buffered) distributed across three reporting periods under early action.

The number of CCOs awarded in this issuance announcement was below the 2016 average of 678,178 CCOs. However the CCOs generated so far in 2016 have been higher than the 465,556 average observed in 2014 and 2013 (608,440 CCOs per issuance announcement). 2014 witnessed four instances where no CCOs were issued, whereas 2013 only included seven issuance announcements as ARB only issued its first CCOs late September of that year. Only 2015,  with an average of 815,051 CCOs per issuance event, has a higher number than those witnessed in 2016 so far. This is mostly attributed to the higher number of forestry offsets to have credited that year, including a mammoth 4.45 million CCOs awarded to the White Mountain Apache Tribe Forest Carbon Project (ACR211).

As a result of the latest updates,  the early action credit pipeline remains steady at 7.36 million. The ROC pipeline now stands at 1.39 million, as the past week also saw 245,955 ROCs assigned to the ClimeCo ODS Destruction 16 & 17  (CAR1182) project.

This week, prices for CCOs traded over-the-counter remained relatively stable for the CCO-8 as it remained at $11.15 over the week. However, the CCO-3 did drop from $11.59 to $11.54, while the Golden fell from $12.08 and $12.05 as of last Friday.

ARB will next announce CCO issuances on Wednesday, April 13, at 12pm PT.

Rohan Nongpiur (rohan@californiacarbon.info)

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