California
As an approved Offset Project Registry (OPR) in California’s Cap-and-Invest Program, the Reserve issues Registry Offset Credits (ROCs) under California Air Resources Board’s (CARB) six Compliance Offset Protocols (ODS, Livestock, U.S. Forest, Urban Forest, Mine Methane Control, and Rice Cultivation). Several Reserve carbon credit protocols underpin the compliance protocols developed for the program and served as a resource for guidance and groundwork during the protocol development process. Our knowledge of and experience with the compliance protocols give project developers and buyers confidence in the credits issued.
Chile
Chile’s Ministry of the Environment has recognized the Climate Action Reserve as an eligible external certification program under the country’s carbon tax framework. The resolution validates the Reserve’s methodologies, recognizes its verification bodies, and enables Reserve projects in Chile to apply for use in the country’s emissions compensation system, subject to applicable credit timing requirements. Under Chile’s carbon tax, companies that emit 25,000 or more metric tonnes of carbon dioxide equivalent, or more than 100 tonnes of particulate matter, each year may use eligible credits to meet up to 100 percent of their carbon tax liability.
Colima
The Reserve is an approved carbon standard under the State of Colima, Mexico State Emissions Compensation System, meaning Reserve projects that meet the State of Colima’s eligibility terms for carbon credits may register to participate. Under the state’s carbon tax, regulated entities may use carbon credits from projects registered in the state’s official registry to address up to 50 percent of their carbon tax liability.
Colorado
Under Colorado’s recovered methane rule, gas distribution utilities can meet a portion of their Clean Heat Plan compliance obligations with eligible recovered methane credits. Colorado’s Air Quality Control Commission has approved the use of agro-industrial wastewater treatment projects under the Reserve’s Organic Waste Digestion Protocol. Eligible credits may be transferred into Colorado’s Greenhouse Gas Crediting and Tracking System for use by regulated entities.
CORSIA
The International Civil Aviation Organization (ICAO) adopted a global carbon offsetting mechanism, Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), to address GHG emissions from international aviation beyond reductions to be achieved from advancements in fuel efficiency, technology, operations and infrastructure. CORSIA aims to stabilize net GHG emissions from international civil aviation at 2020 levels and reduce net GHG emissions to half of what they were in 2005 by 2050. While CORSIA establishes globally harmonized requirements, its implementation is led by national governments through country-specific legal and regulatory frameworks aligned with ICAO rules.
The offsetting requirements of CORSIA apply from 2021 and is being implemented in phases. From 2021 until 2026, only flights between countries that volunteer to participate in the pilot and/or first phase will be subject to offsetting requirements. From 2027, all international flights (with limited exceptions) will be subject to offsetting requirements. Reserve offsets meet CORSIA eligibility criteria for use toward CORSIA offsetting requirements in the Pilot phase (2021-23) and Phase 1 (2024-26) compliance periods.
Querétaro
The Reserve is recognized under the State of Querétaro’s carbon tax framework through its State Emissions Compensation System. Eligible Reserve projects may generate carbon credits that regulated entities may use on a voluntary basis as a flexibility mechanism, allowing them to compensate up to 20 percent (or 50 percent if they are an emissions-intensive or trade-exposed company) of their carbon tax obligation and access fiscal incentives, including those linked to the State Low-Carbon Emissions Seal.
Washington
The Reserve has been approved by the Washington State Department of Ecology (Ecology) to serve as an Offset Project Registry in the state’s Cap-and-Invest Program. Ecology has adopted four offset protocols from California (U.S. Forest, Urban Forest, Livestock, and ODS). As an OPR, the Reserve accepts, reviews, and approves offset project submittals to ensure adherence to the state’s standards before sending the projects on to the state for its review and issuance of compliance credits.