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Offset Scorecard: Low volumes cleared in latest CCO issuances

May 11, 2017 by Billy Hamshaw

(CaliforniaCarbon.info, May 11, 2017)

Just over 40K CCOs were issued by regulator’s ARB yesterday in another low scoring suite of offset issuances. 3 million offsets have been issued in total this year. In comparison, ARB had issued 4.7 million CCOs by this time last year and 4.2 million the previous year.

ARB issuances 2017

ARB issuances 2017

The livestock project, Yippee Farms (CAR1232), was the only newcomer to receive credits this week, gaining 9,696 credits in Pennsylvania. The project is the third under developers NativeEnergy to earn credits under ARB’s compliance protocols.

Projects developed by NativeEnergy

Projects developed by NativeEnergy

After waiting over 2 years from the end of the reporting period, Linde (CAR1077) added an extra 1,500 credits to the project’s previous reporting period.

CCO issuances 05/11

Livestock projects on average take around 360 days to receive ARBOCs from the end reporting date. Forestry projects have generally taken a little longer with an average lag time of 450 days from the end of the RP to ARBOC issuance whilst ODS projects have a quicker turn around time of around 180 days.

Reporting period completion to CCO issuance (days)

Second reporting periods for Camco’s West River Farm Anaerobic Digester Project (CAR1126) and Synergy Biogas LLC (ACR235) added 20K and 8K respectively to total offset pool. The rotation of verifiers qualifies both project’s previous credits CCO-3 status.

ARBOCs by APD

In other news, CCO prices have shown little resilience to the plunge in prices observed on the CCA market over the past week. The CCO-8 has dropped by around 1.5%, clearing at an average USD 10.76 based on quoted broker prices.

Senator Bob Wieckowski’s proposed overhaul of cap-and-trade would completely abolish ARB’s offset program. The threat of a cap-and-trade extension bill deprived of offsets continues to cast uncertainty over the market, stalling important capital needed to get new projects off the ground.

ARB’s next offset issuances will take place on May 23, 2017.

Billy Hamshaw (billy@californiacarbon.info)

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