• 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 | The Question of Linkage | Scorcher

The Question of Linkage | Scorcher

Policy, Scorcher

Sean Penrith, The Climate Trust
Weekly Policy and Finance Update – September 5, 2017

Bottom line | The Western Climate Initiative (WCI) carbon market is identified as one type of cooperative approach that could comply with Article 6.2 of the Paris Agreement. We have to get this right!

Oregon is teeing up their version of a cap and trade bill known as SB1070 for the 2018 session. Full disclosure; this review of the linkage framework is one of curiosity and is not from a place of expertise.

SB1070 directs Oregon to “develop and administer the carbon pollution market … in a manner necessary to enable this state to pursue linkage agreements with market-based programs in other states or countries.” The question of stringency thus emerges when attempting to link jurisdictions. The Government Code section 12894(f)(1) requires ARB to demonstrate that “the jurisdiction with which the state agency proposes to link has adopted program requirements for greenhouse gas reductions, including, but not limited to, requirements for offsets, that are equivalent to or stricter than” California’s. The passage of AB398 in California reduced the offset limit from 8% to 4% in 2021. Oregon’s SB1070 sets the offset limit at 8%. Would Oregon be considered less stringent in this case?

The official opinion by the CA Justice Department offers some insight into how stringency is assessed when contemplating the linkage of Ontario and California. Division 25.5 of the Health And Safety Code informed the Department’s analysis when examining the stringency of each jurisdiction’s overall emission reduction goals, their respective implementation of these goals through a cap and trade program, and their respective treatment of offsets. While Ontario has a 3% less stringent reduction target for 2030 than California, handles invalidation differently, and expands the eligibility of offset types, the Justice Department concluded that linkage adhered to the Health and Safety code that calls for offsets to be real, additional, permanent, enforceable, quantifiable, and verifiable. It is noteworthy that these offset prerequisites were established under the original Western Climate Initiative discussions when Oregon and Washington were active WCI members.

It sounds like Oregon would likely be able to make the case that their overall program is as stringent, especially since SB1070 does not contemplate a ceiling contained in AB 398 which enables ARB to essentially release allowances to reduce price pressure and arguably effect the integrity of the cap.

We need to get this right. The WCI carbon market is identified as one type of cooperative approach that could comply with Article 6.2 of the Paris Agreement. Linked jurisdictions will be transferring compliance instruments across borders while maintaining environmental system design, promoting transparency, and ensuring that double counting is avoided. There is a lot to gain in getting the Oregon system right.


Research and Resources

Attorney General’s Advice to the Governor Concerning Linkage of California and Ontario Cap-and-Trade Programs
California Department of Justice, March 16, 2017

Request for Finding under SB 1018
Office of the Governor, March 16, 2017

The Regional Greenhouse Gas Initiative Status Report
Acadia Center, July 2016


Top News Headlines

Linking Carbon Markets with Different Initial Conditions
Resources for the Future, July 24, 2017

More States Sign on to US Climate Alliance to Honor Paris Agreement
Doyle Rice, USA Today, June 8, 2017

Malloy should support a strong RGGI for a stronger Connecticut
Martha Klein, New Haven Register, August 7, 2017

Networked Carbon Markets
World Bank, 2017


Nothing But Clear Skies Blog

Cap and Trade is All Right
Sheldon Zakreski, The Climate Trust, June 5, 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