Offset Scorecard: Offset issuances pick up as 10 WCI projects gain 700k credits

July 14, 2016 by Rohan Nongpiur

CaliforniaCarbon.info, July 14, 2016: Recent issuance announcements by cap-and-trade regulators the Air Resources Board (ARB) confirm a busy week as eight projects from four different project types received 691k offset credits (CCOs), and that 139k CCO-8s from 3 projects have been converted to CCO-3s. The CCOs issued in this announcement is much higher than the 451k average observe during the first half of 2016, and the highest observed since February’s second issuance announcement.  On a separate update, Quebec’s MDDELCC also handed out around 9k offset credits to two projects developed by WSP Canada.

Out of the projects that were successfully awarded offset credits by ARB, around 608k (88%) were awarded to compliance projects and the remaining 84k going to early action projects. Approximately half of the total (358k CCOs) were assigned to two ozone depleting substances (ODS) projects, while the mine methane project type managed 32% of the total as a Verdeo McElroy project gained 224k CCOs. The remainder was more or less evenly distributed across livestock and forestry project types as 4 livestock projects obtained 60k offsets, and 50k CCOs going to a forestry project under early action.

357,923 CCOs allocated to two ODS projects

The largest issuance of the day went to the ClimeCo ODS Destruction 16 and 17 (CAR1182) project as it managed 245,946 CCOs. This takes the total offset credits issued to ClimeCo projects just over the 2 million mark, with 1.73 million of these coming from 8 ODS projects.

Another ODS project, The Wabascho Clean Sweep 8 (ACR314) project also obtained 111,977 CCOs. With a reporting period completion to issuance lead-time of 67 days, it is the seventh fastest project to gain CCO issuances under the compliance protocol, and the fastest Wabashco project to gain CCOs. This was due to the small reporting period completion to ROC issuance turnaround time of 39 days – the third fastest lead-time ever recorded for this category. Average CCO lead times for Wabashco projects to have gained credits under the ARB compliance program is 97 days, while that for all projects under the ODS protocol is 213 days.

Verdeo McElroy obtains 224,038 CCOs

The Verdeo Marshall County VAM Abatement Project (ACR226) gained 224,038 CCOs for its second reporting period spanning the 2015 calendar year. The first reporting period of this project had already been issued 280,667 CCOs in November 2015. Verdeo has now credited 478,078 CCOs from 2 projects (4 reporting periods), taking the issuance total for mine methane projects to 3,114,814 credits.

94,884 CCOs issued to four livestock projects

A total of 59,717 CCOs were issued across 4 livestock projects with 25,983 CCOs going to two projects under ARB compliance, and 33,734 CCOs assigned to those under early action. Under compliance, Origin Climate’s Brook View Dairy Methane Reduction Project (CAR1036) gained 17,237 CCOs, while Camco’s Edaleen Cow Power (ACR239) obtained 8,746 CCOs. Under early action, Holsum Elm (CAR599) a project with Ag Methane Advisors listed as the APD, obtained 23,308 CCOs to its name. Additionally, Farm Power Lynden Anaerobic Digester (CAR794) managed by The Climate Trust under early action also gained 13,271 CCOs.

Pacific Forest Trust early action forestry project gains 49,819 CCOs

Forestry’s only issuance of the day saw The Van Eck Forest (CAR101) early action project gain a total of 49,819 (9,585 buffered) CCOs, for two reporting periods spanning the 2013 and 2014 calendar year.

139,418 CCO-3 conversions

A-GAS America’s A-GAS RemTec 2014-2 (CAR1089) and Origin Climate’s Brook View Dairy Methane Reduction Project (CAR1036) each saw 107,744 and 14,773 CCO-3 conversions respectively. Camco’s Edaleen Cow Power (CAR980) under early action also saw a combined 16,901 credits from two reporting periods, successfully shorten the length of its invalidation liability period from eight to three years.

8,994 credits issued to two WSP Canada project

Under MDDELCC’s update, WSP Canada garnered a total of 8,994 credits, out of which 4,248 were assigned to the second reporting period of a landfill methane destruction project based in Mont-Laurier. This is the second Quebec project to gain credits for two separate reporting periods, after an earlier WSP Canada projects saw its second reporting period credited just last month.

WSP Canada’s other issuance of the day saw its Saint-Raymond based landfill methane project granted 4,746 offsets. WSP Canada have now credited 36,630 offsets from 3 projects (5 reporting periods). 7 of the 8 projects listed so far in Quebec, have been credited a total 494,342 offsets Another WSP Canada landfill methane project, this time based in Saint-Flavien  is the only project at the current moment with pending issuances in Quebec’s offset protocol.

Pipeline and market update

With 607,944 CCOs  issued to ARB projects, the ROC pipeline now dips to 3.38 million. The ROC backlog has been growing steadily over the past few months as a combined 2.88 million ROCs were assigned since the beginning of May, while only 970k CCO issuances were awarded to ARB projects (including those announced recently) in the same time-frame.

Including the latest updates, a total of 41.37 million offset credits have now been issued under the WCI (California – 40.88 million; Quebec – 494k) offset program. Subtracting those offsets which have been have been invalidated, buffered and retired in the first compliance period, approximately 24.5 million WCI offsets are still available for future compliance obligations.

The next CCO issuance announcement will take place on Wednesday, July 27, at 12 PM PT.

Rohan Nongpiur (rohan@californiacarbon.info)

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