Offset Scorecard: ARB issues 3.5 million compliance offsets, including first for VCS project

November 16, 2015 by Rohan Nongpiur

CaliforniaCarbon.info, November 16, 2015: November’s first issuance announcement confirms another busy week in which eight projects were altogether awarded 3,515,289 CCOs, bringing the total issued so far to 33.89 million. 1,671,623 CCOs were awarded to four ARB compliance projects, while four early action projects gained a combined 1,843,666 CCOs. ARB also confirmed that a further 390,224 CCOs from 5 projects achieved shortened invalidation liability, meaning that the total CCO-3 issuance rises up to 4.45 million.

First issuance for ARB mine methane project

The Verdeo McElroy VAM Abatement Project (ACR226) is the first mine methane ARB project to be credited with CCOs, having been issued 280,667 CCOs for its first reporting period after transitioning from the early action offset program. The project successfully converted 197,411 CRTs into CCOs in February this year as CAR793. Ruby Canyon Engineering participated as the verifiers for the ARB project as well as the initial verifier for the CAR project, while SES conducted the desk review verification.

First VCS project gains CCOs

Meanwhile, another mine methane project, Keyrock Energy’s Corinth Abandoned Mine Methane Recovery Project (VCS573), has become the first Verified Carbon Standard (VCS) project to gain CCOs. Through the early action route, a total of 490,456 CCOs were issued for 5 reporting periods ranging from 2010 to 2014. A total of 1,049,300 CCOs have now been issued to mine methane projects, 768,633 of which have come through early action. A further 2,250,374 EAOCs from 4 early action mine methane projects continue to await CCO conversion. VCS573 has gone on to re-list as VCSOPR2 under the ARB protocol.

2.7 million CCOs issued to various forestry projects

A total of 2,674,868 CCOs were issued to three different forestry projects. North Coast Resource Management’s (NCRM) Brushy Mountain (CAR1095) saw 1,367,613 (262,582 buffered) CCOs issued under the ARB protocol. SCS Global Services verified this reporting period. NCRM have a further 271,144 CCOs issued from 1 project under ARB, while they have 6 more ARB projects yet to register credits. Under early action, NCRM’s Willits Woods (CAR661) has previously seen 1,281,029 CCOs issued for 9 reporting periods.

Secondly, the Yurok Tribe Sustainable Forest Project (CAR777) was awarded 1,306,855 CCOs for 3 reporting periods spanning 2011 to 2013. A further 29,415 CRTs from a 2014 reporting period still awaits CCO issuance. SCS Global Services were the EAOP verifiers and this project was also re-listed under ARB as CAR1070, which has yet to generate credits. Yurok Tribe also operated the Yurok Tribe/FCP CKGG IFM (CAR993) project, which has previously received 856,243 CCOs.

A final 400 CCOs (76 buffered) were awarded to the Garcia River Forest (CAR102) project managed by The Conservation Fund.

Three livestock projects see CCO issuance

3 livestock projects gained a combined 29,298 CCOs. Two of the projects, Origin Climate’s Scenic View Dairy Methane Reduction Project (CAR1035) and the RES Agriculture – DM2-1, respectively gained 18,359 and 4,984 CCOs under the ARB protocol. Furthermore, Fiscalini Farms Anaerobic Digester (CAR589), managed by Ag Methane Advisors, also receives 5,955 CCOs for its 2013 reporting period under early action. This follows the issuance of 788 CCOs for its 2012 reporting period at the previous issuance round in October 2015.

CCO-3 issuances for 5 projects 

A total of 5 projects also saw their invalidation liability reduce to 3 years. 1 is a livestock project, whereas the other 4 are ODS projects. Origin Climate’s Scenic View Dairy I (CAR418) saw 25,000 CCO-8s convert to CCO-3s across two reporting periods. While, Diversified Pure Chem’s DPC Domestic ODS Destruction Project #17 and DPC Domestic ODS Destruction Project #19 also saw 30,587 and 99,696 CCOs reduce their invalidation liability. Other ODS projects to see their CCO-8s convert to CCO-3s include 126,314 CCOs associated with ClimeCo’s ECC ODS Destruction 2-2014 and 108,627 CCOs associated with A-GAS Americas’ Coolgas ODS 2013 Project #1 also saw their invalidation liabilities reduce to 3 years.

Pipeline update

The latest issuances see the early action credit pipeline fall to 9.78 million, and the ROC pipeline dip to 1.21 million.

Market update

Last week, prices for CCOs traded in the secondary market moved narrowly. The Golden CCO saw a 6 cent rise from $12.14 to $12.20 last week, before dropping back to the $12.00 mark early this week. The CCO-3 remained at $11.38 up to last Friday, but has slid back to $11.30 over the course of this week. The CCO-8 saw a 5 cent rise from $11.08 to $11.13 over the course of last week, but has since returned to the $11.08 mark. It is likely that the passage of the CP1 surrender deadline has led to buy-side price pressure abating somewhat, even if in the medium term offsets are expected to remain in short supply.

Next issuance

ARB will next announce CCO issuances on Tuesday, November 24, at 12pm PT. 

Rohan Nongpiur (rohan@californiacarbon.info)

Steven Neoh (steven.neoh@climate-connect.com

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