California’s carbon market took a step forward today with the issuance of the first registry offset credits (ROCs) by the American Carbon Registry (ACR). The 300,000 credits were developed by Environmental Credit Corp. under Air Resources Board’s (ARB) ozone depleting substances (ODS) compliance protocol.
The next step in the process is for the Project Operator to file a request with ARB to issue ARB Offset Credits (ARBOCs), the instrument useable for compliance under AB 32 and generally known in the market as California Carbon Offsets (CCOs). ARB may request additional information before making an issuance determination. Once ARB determines the ROCs and all submitted data meets regulation criteria for issuance, they next issue ARBOCs into the Project Operators CITSS account. ARB has 45 calendar days to complete their issuance determination (Sept 12th).
CCOs are useable for up to 8% of a regulated entities compliance obligation. The first issuance of ROCs marks a milestone towards California’s covered entities being able to take delivery of CCO’s.
If you have questions regarding the current market conditions, please contact our US Carbon team at: +1 414.963.9137 or +1 914.323.0265.