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Offset Scorecard: A trio of Forest Carbon projects gain fresh issuances

August 10, 2017 by Ronjoy Bezbarua

After missing out on issuances last month, Forest Carbon was the sole source of new volume issued by ARB this week. 762,826 credits were generated in total across 3 projects. Quebec’s Ministry of Climate Change were also in on the action, awarding two Landfill Methane Destruction projects offsets ready for compliance.

Blue Source’s Bishop IFM (CAR973) was the most noteworthy issuance, picking up 450K credits for the project’s fourth reporting period. The project now holds a total of 3.1 million credits making it the fourth highest earning offset project listed under California’s carbon program and largest managed by Blue Source, one of the most active developers of forestry projects. Whilst the majority of Blue Source’s credits were accrued through the Early Acton program, the firm has large number of projects listed under the 2015 forestry protocols. These projects now face tight time constraints to get project inventories in order before the 2-year deadline is surpassed in November of this year.

Finite Carbon, the lead developer of carbon offsets, added a further 123K to their portfolio through the second reporting period of Passamaqouddy Tribe IFM (CAR1175). The rotation of verifiers converts a sizeable 4.1 million CCO-8s from the project’s previous reporting period to CCO-3s. This is the largest single source of the lower risk offsets and extends the total count of offsets with a 3-year invalidation period to 23.2 million.

349K CCO-3s were also accrued from Blue Source- Bishop IFM (CAR973).

Willits Woods IFM (CAR1140) of Coastal Ridges LLC was the only Californian project to generate credits this week accruing over 188K credits from its second reporting period. It has generated an overall 406K credits from two reporting periods with close to 78K credits in the buffer and remains the sole credited project of Coastal Ridges LLC.

Based on CaliforniaCarbon.info’s emissions forecast and historical offset utilization, an estimated 51.1 million offsets will be needed to satisfy demand for Compliance Period 2. At present 38.9 million offsets are available for compliance. Combined with the backlog of 29.5 million ROCs awaiting ARB approval as well as the high number of forestry projects expected to come online over the next few years, CC.info analysts expect supply to meet demand in the short term.

Forestry projects continue to account for the majority of credits issued till now with over 44.7 million credits issued which is around 66% of the total 67.7 million credits available for compliance. Over 8 million credits are held in the buffer pool.

WCI partner’s, Quebec also issued new credits this week. The Landfill Methane Destruction projects LE002 and LE004 picked up a respective 6,178 and 3,746 offsets. Both projects have been developed by WSP Canada, an engineering consulting firm based out of Montreal.

ARB’s next issuance will take place on Aug 23.

Billy Hamshaw – billy@californiacarbon.info

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