WCI Overview
The Western Climate Initiative, or WCI, was formed in 2007 by the governors of five western U.S. states (California, Oregon, Washington, Arizona and New Mexico) with the goal of developing a multi-sector, market-based program to reduce greenhouse gas emissions.
Today, the WCI consists of three linked jurisdictions: California, Quebec and Nova Scotia. Within the WCI market, California’s cap and trade program represents the largest source of emissions reductions with a legal mandate to reduce emissions by more than 16 percent between 2013 and 2020, and by an additional 40 percent by 2030.
In 2006, the State of California passed the Global Warming Solutions Act of 2006 (AB 32), which sets a goal for greenhouse gas (GHG) reductions from 1990 levels by the year 2020. This law directed the California Air Resources Board (ARB) to develop discrete early actions to reduce GHGs and prepare a plan for meeting GHG reductions targets. In 2017, the state of California extended the cap and trade program to 2030 with increased reduction targets.
Under the AB 32 regulation, each emitter covered by the legislation must demonstrate that they own the rights to emit a given level of GHGs above the cap through ownership of an allowance, which is defined as a permitted level of emission granted by California’s Air Resources Board (ARB) or purchased through an auction.
Emitters also have the option to purchase an offset which is defined as an accredited amount of GHG emission reductions created by a third party project that meets eligibility requirements, is audited by an independent verifier, and quantifies a specific volume of greenhouse gases according to accepted project protocol.
Under the AB 32 legislation, there are five accepted types of projects that can deliver offsets: 1) reduction of ozone depleting substances, 2) agricultural methane reduction, 3) US forest projects, 4) US urban forest projects and 5) Rice cultivation projects.
ARB Authorized Registry
The California Air Resources Board (ARB) has defined an accreditation process that allows private entities to list and register projects, determine whether all criteria for approval have been met, and track the sale and delivery of offset credits. For each registry an OPO and APD must have an account with that organization to list a project, receive official verification that the project has been completed, and track the sales of credits into the California market. The three approved registries to date include:
We are seeking projects that can be developed under an Improved Forest Management (IFM) project structure. An Improved Forest Management Project involves management activities that maintain or increase carbon stocks on forested land relative to baseline levels of carbon stocks. Management activities under an Improved Forest Management (IFM) project may include, but are not limited to:
An Improved Forest Management Project must fully satisfy the eligibility rules in the protocol:
