• Who We Are
    • The Climate Trust
    • Climate Trust Capital
    • Achievements
    • Leadership And Board Of Directors
  • What We Do
    • Action
    • Impact
    • Case Studies
  • Financials
  • Media
    • Blog
    • News & Press
The Climate Trust | Ontario's Proposed Framework Better Manages Invalidation

Ontario's Proposed Framework Better Manages Invalidation

California Market, Policy, Scorcher

Peter Weisberg, The Climate Trust
Weekly Policy and Finance Update – October 23, 2017

Bottom line | Ontario has proposed a better framework for managing potential offset invalidations, replacing California’s buyer liability with a combination of an insurance pool and seller liability. California and Oregon should take note.

At the beginning of this month, Ontario released its Draft Ontario Offsets Credit Regulation. This proposes a significantly improved process for invalidation (or what it calls “reversal”) which California, Oregon and other jurisdictions should consider as new rules are drafted.

While California currently requires the buyer to be liable for any invalidation, Ontario relies on a combination of seller liability and an insurance pool instead. Offset projects surrender 3% of issued credits to an “environmental integrity account.” If credits are invalidated and the reason for that invalidation is listed by the protocol, then credits from the environmental integrity account replace invalidated credits. (The Ontario landfill gas protocol, for example, specifies potential for reversals from Errors, Omissions or Misstatements; if a calculation mistake was missed by the verifier, registry and regulator and then later discovered, the buffer pool would compensate for any inaccurately issued credits.) For invalidations not specified by the protocols (like fraud on the part of the project developer), then the offset project is responsible for replacing any invalidated credits.

This framework creates the proper incentive structure. Offset project developers are liable for the items they can control, like acting in good faith. More difficult to manage potential sources of invalidation, like regulatory compliance issues at dairy digesters, can be specified by the protocol and protected by the environmental integrity account.

With less than 0.1% of all offsets issued to date invalidated, California’s system of buyer liability unnecessarily limits offset use to the largest emitters, which have the budget, capacity and expertise to manage buyer liability. California has already endorsed Ontario’s improved approach; in preparing for linkage, the Governor’s Transmittal Response to CARB on Findings under SB 1018 wrote “While Ontario uses a different mechanism to correct any failure or invalidation of an offset, the approach is equally effective…both protect the program in the event that an offset is invalidated.”


Research and Resources

Draft Ontario Offsets Credit Regulation
October 2017

Offset Initiative Protocols for Ontario’s Cap and Trade Program
October 2017

Governor’s Transmittal Response to CARB on Findings under SB 1018
California Office of the Governor, March 2017


Top News Headlines

Nature’s Make or Break Potential for Climate Change
The Nature Conservancy, October 2017


Nothing But Clear Skies Blog

Position Available: Program Director, Environmental Price Assurance Facility
Karena Gruber, October 2017


Recent Scorcher

Forest Carbon is Backed by Good Science, Sean Penrith October 16, 2017
An Increased Commitment to Green Causes Since Trump? Sheldon Zakreski, October 9, 2017
Oregon Should Create its Own Rules Peter Weisberg, October 2, 2017

Image credit: Flickr/Bemep

Tags
Adaptation
Aggregation
American Carbon Registry
Biochar
Blue Carbon
C-AGG
California Air Resources Board
California Carbon Info
Cap and Invest
carbon offset standards
Carbon Pricing
Carbon-Pulse
Clean Power Plan
Climate Action Reserve
Climate Bonds
Conservation Finance Network
Corporate Social Responsibility
CORSIA
Culture
Dairy Digester
Ecosystem Marketplace
Edible Portland
Energy Central
Environmental Defense Fund
Environmental Justice
EPAF
Farm Power Northwest
GreenBiz
IPCC
Job Announcement
Leadership
Low Carbon Fuel Standard
Milestone
Oregon Carbon Dioxide Standard
Oregon Clean Fuels Program
Oregon Energy Facility Siting Council
Oregon Global Warming Commission
Pacific Coast Action Plan on Climate and Energy
Paris
Portland General Electric
REDD
Renewable Fuel Standard
Renewable Identification Numbers
Request For Proposal
RGGI
Rice
Risk Management
Scientific American
Social Cost of Carbon
Supply Chain
Sustainable Business Oregon
Triple Pundit
USDA Natural Resources Conservation Service
Verified Carbon Standard
Western Climate Initiative
Recent Comments
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT
Proud Member Partners in Diversity
  • DONATE
  • CAREERS
  • CONTACT

©2020 The Climate Trust. Crafted by ILLUSIO