The California Global Solutions Act also referred to as Assembly Bill 32 (AB 32) was established in 2006 with the mandate to implement a comprehensive Greenhouse Gas (GHG) emission reduction program for the state of California. Under AB 32 a Cap and Trade program was designed to return state-wide emissions to 1990 levels by 2020. AB 32 presents the second largest emission trading program in the world and the largest market for forest based carbon offsets. The program will run from 2013 to 2020 with potential for expansion and linkage into future compliance periods.
The scope of AB 32’s cap and trade system includes:
- Entities that emit over 25,000 tonnes of emission per year are required to surrender allowances or purchase project based emission reductions (offsets)
- Approved offset protocols include forestry, urban forestry, destruction of ozone depleting substances, and destruction of methane from livestock manure systems
- Offsets account for 8% of the compliance obligation
- Program went live in January 2013 and phase 2 will be initiated in 2015 which includes the transportation fuel sector
- Market linkage for allowances and offsets with Quebec to begin in 2014
For more information on the latest policy and market developments as well as offset project development services for the AB 32 market please see our forest carbon project development services and contact us at anytime.