The Cap and Trade Compliance Instrument Tracking System Service (CITSS) is now open for registration. The system set up by the California Air Resources Board (ARB) will facilitate compliance instrument transfers, as well as provide a record of ownership, account details, compliance verification and market oversight information.
The system is being made available in two releases. The initial release, which is currently active, allows for account application and user registration. Registration is required prior to applying for a compliance instrument account and a compliance instrument account must be established before and entity can apply to participate in the November GHG allowance auction.
In addition, before regulated entities receive their free allocations in October and November, they’ll need to open an account by submitting the necessary corporate documentation and application materials. Likewise, for offsets developers or other participants in the market, user account registration will be required.
ARB advises market participants to complete their registration and submit their applications and documentation no later than August 1, 2012. Once registration is complete, ARB will test the system in August-early September and operationalize the system by September. This second phase of the CITSS release will offer full functionality, including compliance instrument issuance, tracking, consignment and transfers.
Evolution Markets offers advisory services to assist market participants in preparations for the start of compliance under the cap and trade program, including the establishment and management of CITSS accounts.
To find out more about these integrated advisory and transactional services and how we can help your organization prepare for carbon regulations, please contact our U.S. Carbon Markets team at: +1 415.963.9137 or +1 914.323.0265.