Future Protocol Development
Request for Proposals to Develop an Issue Paper for Land Use Change Activities
The Reserve is seeking a contractor to conduct necessary supporting research and analysis and develop a comprehensive issue paper addressing carbon offset protocol development for two potential land use change activities: avoided conversion of threatened grasslands and conversion of marginal cropland to grassland. Proposals are due no later than 5:00 PM PDT on Friday, May 4, 2012. Click the link below for more information.
Project Protocol Concept Submissions
The Climate Action Reserve welcomes project protocol concept suggestions from interested stakeholders at any time. The concepts can be submitted via the form below which is designed to address questions that the policy team must explore when determining a concept’s potential for standardized protocol development under the Reserve program. Before submitting a concept form, please review the information below concerning the concept review process, important criteria considered by staff for protocol development, and the Reserve’s summary of previously submitted concepts.
The form should be filled out with the best available information and emailed to policy@climateactionreserve.org.
Project Concept Review Process
The timeline for scoping new project concepts varies depending on the project type and available information. Staff conducts brief internal reviews of the concept and supporting documentation before meeting as a team once a month to discuss the project type. If there is good potential for protocol development then staff will conduct further internal research. If the project type shows promise for developing a standardized protocol, the Reserve will host a formal public scoping meeting. Following the scoping meeting, there may be a project protocol kickoff meeting which initiates the protocol development process. From that point forward, the process may take 6 to 12 months, or more, depending on the project type.
For more information on the protocol development process, please see the Reserve Program Manual.
Criteria for Protocol Development
The Reserve takes into consideration a number of issues when assessing a project type for protocol development, including those listed below. Although a prospective project type does not necessarily need to fully satisfy all of these criteria, it should be a good “fit” with most of them. In addition, submitters of new project concepts are encouraged to review the Reserve’s existing protocols to better understand the general topics that must be covered and the requirements that must be met for any protocol. Assessment criteria for new project concepts include the following.
Whether GHG Reductions Occur Outside Proposed U.S. Caps on GHG Emissions
Since issuing offset credits for reductions that occur at capped emission sources would result in double counting, the Reserve focuses on project types affecting greenhouse gas (GHG) emissions that are unlikely to be capped. In California, for example, an economy-wide cap-and-trade system is being implemented that will ultimately cover all fossil fuel-derived CO2 emissions. Projects that would reduce CO2 emissions from fossil fuel combustion are therefore not being considered for offset protocol development.
Whether GHG Reductions Are Direct or Indirect
Direct emission reductions are those that occur at sources (or sinks) that are directly owned or controlled by the project developer, i.e., the entity that will operate the project and receive Climate Reserve Tonnes (CRTs). All else equal, the Reserve will focus on project types that result in direct reductions. Direct emission reductions are generally easier to verify because the sites where they occur can be easily accessed and directly monitored. When emission reductions occur at sites or sources owned by the project developer, there is also less risk that an entity other than the project developer will claim ownership of the reductions. Thus, these projects are unlikely to be at risk for double counting or ownership issues.
Whether GHG Reductions Are Likely To Be Additional
“Additionality” is a critically important criterion for carbon offsets (see Section 1.2 of the Reserve Program Manual). In general, the Reserve will not develop protocols for project activities that are implemented regularly under “business as usual” circumstances (i.e., in the absence of carbon offset program incentives). When submitting a project concept to the Reserve, it will often be helpful to: (1) identify general barriers (including financial) that currently exist to the implementation of the proposed project type; (2) explain how carbon offset revenues would enable projects to overcome these barriers and allow greater levels of implementation. A detailed financial characterization for a typical project can help to establish whether there is significant potential in developing a carbon offset protocol.
In addition, no project type is will be eligible under the Reserve’s program if the project activity is required by law (federal, state or local). Project types for which the regulatory environment is uncertain may receive a lesser priority in terms of protocol development.
Whether Standardized Additionality and Baseline Determinations are Possible
A core objective of the Climate Action Reserve is to adopt “standardized” approaches to offset crediting. Standardized offset crediting has two main elements:
- Determining the eligibility and additionality of projects using standard criteria, rather than project-specific assessments
- Quantifying GHG emission reductions using standard baseline assumptions, emission factors, and monitoring methods
For more information on standardized offset crediting, please see Section 2.1.1 of the Reserve Program Manual. For some types of projects, it will be difficult to credibly and accurately determine additionality and estimate baseline emissions using standardized criteria and parameters. In general, the Reserve will not prioritize protocol development for these project types. A project type may nevertheless be considered if it is possible to combine standardized additionality assessments with project-specific quantification methods, or where the scope of a protocol can be limited to address only activities and conditions for which standardized approaches are feasible.
Whether There is Significant U.S. Potential for Reducing GHG Emissions
Because it takes significant effort and resources to produce a standardized project protocol, the Reserve will prioritize project types that, if fully implemented, would result in large and geographically diverse GHG reductions. However, because the Reserve is focused on U.S. reduction opportunities, protocols that cover GHG reductions in other countries will generally not be considered.
Whether Well-Developed Quantification Methodologies Are Available
Protocols are more easily developed where sound scientific methods already exist to determine baselines and quantify emission reductions. Although the Reserve does not directly adopt methodologies developed by other organizations (all of its protocols are developed and finalized through public, transparent stakeholder processes), it will prioritize project types for which well-developed and vetted GHG quantification methods already exist.
Whether High Quality Data Are Available for Quantification and Establishing Additionality Thresholds
High quality datasets are necessary to establish accurate quantification parameters, as well as to evaluate “business as usual” activities for the sector in which the project activity occurs. Setting performance thresholds and other standardized tests for additionality requires robust and transparent data on the current state of the sector.
Whether Accurate and Cost-Effective Measurement and Monitoring Techniques Are Available
It is essential to accurately quantify the GHG reductions that will be used for carbon offsets. Accurate quantification depends on accurate measurement and monitoring of a project’s effects on GHG emissions. In some cases, accurate measurement techniques may be unavailable or prohibitively expensive. If the monitoring and measurement techniques are too complex or infeasible, a project type may be rejected for protocol development.
Whether Projects Would Have Positive or Negative Environmental and Social Co-Effects
All else equal, the Reserve will prioritize project types that can create significant co-benefits for the habitats and communities where projects take place. Project types that may cause, or be associated with, significant negative social and environmental impacts will be avoided. Please see Section 2.4.6 of the Reserve Program Manual for further information on the Reserve’s policies on project co-benefits and harms.
Past Submissions
The Reserve has received numerous project protocol concept submissions. The various project types are outlined below: expand the title to review the Reserve’s determination of the concept’s potential for standardized project protocol development, based on the criteria described above.
Project Concept: Algae Oil Biofuel
Description: Production of hydrocarbons by algae to replace crude oil imports and use in the U.S.
Reserve Assessment: This project type rates well for positive environmental co-effects but challenges include the potential reductions falling under future U.S. regulation (CO2 from fossil fuel in the baseline), the reductions occurring indirectly when fossil fuel use is replaced by algae oil biofuel, and the availability of high quality data and quantification methods since this project type is in its research and development stage.
Project Concept: Anesthetic Gas Recapture and Reuse
Description: Recapture and reuse of anesthetics in operating rooms in order to displace the production and use of virgin anesthetics.
Reserve Assessment: This project type rates well in terms of the potential reductions being additional (project activities are not considered “business as usual” and not required by current or future regulation) but significant challenges include developing standardized baseline determinations, limited reductions in the U.S., availability of data and quantification methodologies, accurate and cost-effective measurement and monitoring techniques, and the eligibility of the anesthetic gas (whether the global warming potentials have been assessed by international scientific organizations).
Project Concept: Aviation Biofuel Fuel Switching
Description: Replacing jet plane fuel with a blend of fossil fuel and biofuel produced from feedstocks such as Camelina, Jatropha, algae, and/or waste cellulosic biomass.
Reserve Assessment: This project type rates well in terms of its potential for reducing GHG emissions. However, challenges include the data availability for quantifying and establishing additionality thresholds as well as standardizing additionality determinations when the life cycle assessment of potential biofuel feedstocks must be considered.
Project Concept: Avoided Emissions from De-vegetation
Description: Avoiding crop production related emissions from farm equipment, fertilizer oxidation, and production, packaging, and transportation of crop inputs by protecting native grasslands where a demonstrable threat of conversion can be documented. This project concept is similar to avoided conversion forest projects.
Reserve Assessment: This project type rates well for positive environmental co-effects but challenges include developing standardized additionality and baseline determinations as well as accurate and cost-effective measurement and monitoring techniques. The Reserve may address this as a potential project activity during the Cropland Management Project Protocol development process. Please see the Cropland Management webpage for more detail.
Project Concept: Bicycle Commuting and Sharing Programs
Description: A variety of programs that increase bicycle commuting, decrease and avoid the number of fossil fueled vehicle trips, and provide the management systems and tools to share bicycles, track commutes, and quantify avoided emissions over time.
Reserve Assessment: This project rates well for positive environmental and social co-effects but significant challenges include the emission reductions (from avoided fossil fuel use) occurring under proposed cap-and-trade regulation, accurate and cost-effective measurement and monitoring techniques, availability of high quality data for quantification and establishing additionality thresholds, and developing standardized additionality and baseline determinations.
Project Concept: Biomass-to-Energy
Description: A variety of project activities that use biomass or waste biomass as a source of fuel in order to offset fossil fuel use.
Reserve Assessment: One challenge facing this project type includes developing standardized baseline determinations because of the variety of biomass feedstocks that could be used for the project (what would have happened to the feedstocks during “business as usual” activities before the project is initiated). Other challenges include the ability to accurately and cost-effectively measure and monitor the project activities and emission reductions as well as the availability of high-quality data sets and quantification methodologies. Please see the Soil Carbon Sequestration of Biochar issue paper, available below under the Issue Papers section, for more detail on biomass feedstocks.
Project Concept: Canada ODS Foam Destruction
Description: Adapting the foam ozone depleting substances (ODS) destruction guidance from the Reserve’s U.S. ODS Project Protocol Version 1.0 for use in Canada.
Reserve Assessment: This project type has potential for development if and when the Reserve adapts the U.S. ODS Project Protocol for use in Canada. This webpage will be updated if the Reserve expands protocol development to Canada.
Project Concept: Catalytic Reduction of N2O in Nitric Acid Plants
Description: Employing N2O abatement technology (secondary or tertiary catalyst) at nitric acid plants in order to reduce the N2O emissions from nitric acid production.
Reserve Assessment: This project type rated well for all protocol development criteria and was consequently developed into the Nitric Acid Production Project Protocol.
Project Concept: Conservation Tillage
Description: Reducing the intensity of tillage so that a certain percentage of crop residues remain in the soil. Reducing tillage also results in reduced diesel consumption.
Reserve Assessment: This project type rates well for potential GHG reductions in the U.S. but challenges with this project type include assessment of additionality, accurate and cost-effective measurement and monitoring techniques, and mechanisms to ensure permanence of carbon storage. This project type may be addressed during the Cropland Management Project Protocol development.
Project Concept: Destruction of Ozone Depleting Substances
Description: Destroying ozone depleting substances (ODS) from air conditioning equipment and insulation foams. Substances include specific CFC refrigerants and CFC or HCFC blowing agents in foam.
Reserve Assessment: This project type rated well for all protocol development criteria and was consequently developed into the U.S. and Article 5 Ozone Depleting Substances Project Protocols.
Project Concept: Elimination of SF6 from Magnesium Production
Description: Replacing SF6 cover gas with an alternate gas of little or no-global warming potential.
Reserve Assessment: This project type rates well for significant U.S. potential reductions, existing quantification methodologies, direct rather than indirect emission reductions, standardizing baseline determinations, and accurate and cost-effective measurement and monitoring techniques. However, challenges with this project concept include proposed U.S. caps on GHG emissions and extensive voluntary agreements to eliminate SF6 which affect the additionality of the project activity.
Project Concept: Energy Load Reduction
Description: Improving energy efficiency whereby an electricity end-user can enroll in a demand response load reduction program to reduce proposed electricity rate increases.
Reserve Assessment: This project type rates well for its potential for U.S. GHG emission reductions but significant challenges include proposed U.S. caps on GHG emissions as well as the indirect emission reductions resulting from the project activity.
Project Concept: Environmentally Friendly Building / Green Building
Description: Using biomass or waste biomass to produce environmentally friendly building material for business and home development. Reduces or eliminates the need for forest lumber and wood products in commercial and residential buildings.
Reserve Assessment: This project type rates well for positive environmental and social co-effects but challenges include developing standardized additionality and baseline determinations, accurate and cost-effective measurement and monitoring techniques, availability of quantification methodologies and data, indirect emission reductions, and limited U.S. potential for GHG emission reductions.
Project Concept: HFC Avoidance
Description: Avoiding the use of HFCs by using non-global warming potential (GWP) blowing agents in polyurethane foam production and the production of other similar products. The project concept credits the avoided fugitive emissions of HFCs during the production process.
Reserve Assessment: This project type rates well for available data and quantification methodologies for emission reductions; however, challenges with this project type include the limited potential for emission reductions in the U.S. and the additionality of the reductions given potential future U.S. phase-out of HFC production.
Project Concept: In-Situ Landfill Composting
Description: Composting process of “in situ” aerobic degradation of organic waste in landfills. Wells are drilled to inject air and moisture into closed landfill cells in order to accelerate the decomposition of waste and avoid the production of methane gas. This composting system is also known as an aerobic bioreactor.
Reserve Assessment: This project type rates well in terms of potential U.S. emission reductions, direct and additional reductions, and the availability of quantification methodologies. Challenges with this project type include the monitoring and measurement of emission reductions and determination of the baseline emissions. The Reserve is commissioning an issue paper to further scope this concept, see In-Situ Composting and Bioreactors in the Issue Papers section below.
Project Concept: Low Temperature Asphalt Production
Description: Substituting a proportion of the bitumen binder used in hot mix asphalt which results in lower mix production temperature and therefore reduced consumption of fossil fuels. There is also opportunity to credit the avoided fugitive methane emissions associated with the handling and storage of bitumen since the production of bitumen is avoided when using a substitute for asphalt production.
Reserve Assessment: This concept rates well with many of the protocol development criteria but the most significant challenge is the limited total potential for U.S. emission reductions.
Project Concept: Metal Recycling
Description: Recycling end life products into feedstocks for steel, aluminum, and copper mills. The credited project activity for this concept is the reduction in energy from using recycled material over virgin material.
Reserve Assessment: This project type rates well for significant U.S. potential reductions but challenges include future U.S. caps on GHG emission reductions, emission reductions occurring outside the control of the project (indirect reductions), and the additionality of emission reductions given that a high percentage of metals are already recycled in the U.S. as “business as usual.”
Project Concept: Methane Avoidance from Rice Farming
Description: Altering planting and flooding practices to avoid methane emissions released during “business as usual” rice farming.
Reserve Assessment: This project type rated well for all protocol development criteria and is consequently being developed into the Rice Cultivation Project Protocol, expected completion in spring 2012.
Project Concept: Methane Avoidance from Shale Gas Extraction
Description: Avoiding the release of methane gas from shale gas extraction by leasing mineral rights in exchange for emission reduction credits. Emission reduction credits provide incentive for the landowner to protect their land against shale gas extraction.
Reserve Assessment: This project type rates well for positive environmental co-effects; however, challenges include the emission reductions occurring under proposed U.S. caps on GHG emissions, emission reductions occurring indirectly, potential leakage from increased gas extraction elsewhere, standardizing additionality and baseline determinations, availability of high quality data for quantification and establishing additionality thresholds, and availability of accurate and cost-effective measurement and monitoring techniques.
Project Concept: Municipal Waste Optimization
Description: Using web-based and wireless technologies to track and optimize municipal solid waste and other waste generated by residential households. Goal is to reduce waste volumes sent to landfills and improve recycling rates.
Reserve Assessment: This project concept rates well for positive environmental and social co-effects, accurate monitoring and measurement techniques, and additionality of emission reductions but significant challenges include standardizing baseline determinations and emission reductions occurring indirectly.
Project Concept: Natural Gas Use Reduction in Air Pollution Control Equipment
Description: Replacing add-on controls in air pollution control equipment which use natural gas to combust pollutants. Emission reductions are avoided methane release from the baseline scenario.
Reserve Assessment: This project concept rates well for the availability of data for quantification and establishing additionality thresholds, availability of accurate measurement and monitoring techniques, and standardizing baseline determinations. However, challenges include the emission reductions occurring under potential U.S. caps on GHG emissions and the emission reductions occurring indirectly.
Project Concept: Paper Recycling
Description: Municipal curbside recycling programs that use incentives to increase the diversion of paper from landfills above historical diversion rates.
Reserve Assessment: This project type rates well for U.S. potential to reduce GHG emissions, the additionality of emission reductions, and availability of quantification methodologies but challenges include emission reductions occurring indirectly, developing standardized additionality and baseline determinations, availability of high quality data for quantification and establishing additionality thresholds, and accurate and cost-effective measurement and monitoring techniques.
Project Concept: Personal Carbon Credits
Description: Measuring and verifying reductions in energy use at residential households through efficiency improvements in electricity, natural gas, heating oil, and/or propane use. Credits would be given to the residents initiating the project activity.
Reserve Assessment: This project concept rates well for established quantification methodologies, significant U.S. potential to reduce emissions, and availability of data for quantification but challenges include the emission reductions falling under U.S. potential caps on GHG emissions, emission reductions occurring indirectly, standardizing additionality and baseline determinations, and availability of accurate measurement and monitoring techniques.
Project Concept: Small Scale Fuel Switching from High Carbon to Low Carbon Fuel
Description: Where fossil fuels are used in industrial, residential, commercial or electricity generation activities, fuel is changed from a more carbon intensive fuel to a fuel that is less carbon intensive.
Reserve Assessment: This project type rates well for availability of a well-developed quantification methodology and U.S. potential for emission reductions but challenges involve the emission reductions occurring under proposed U.S. caps on GHG emissions, emission reductions occurring indirectly, standardizing additionality and baseline determinations, and availability of accurate and cost-effective measurement and monitoring techniques.
Project Concept: Truck Fuel Economy Upgrades
Description: Implementing various upgrade equipment to the standard tractor trailer design and operations to improve baseline fuel economy and reduce carbon emissions from avoided fossil fuel use.
Reserve Assessment: This project rates well for U.S. potential for emission reductions but challenges include the emission reductions occurring under proposed U.S. caps on GHG emissions, emission reductions occurring indirectly, standardizing additionality and baseline determinations, availability of well-developed quantification methodologies, and available data for establishing additionality thresholds.
Project Concept: Truck Stop Electrification
Description: Reducing idling time, and therefore fossil fuel use, at truck stops through electrification stations for truck cabs.
Reserve Assessment: This project type rates well for availability of quantification methodologies and availability of data for quantification and establishing additionality thresholds; however, challenges include the emission reductions occurring under proposed U.S. caps on GHG emissions, emission reductions occurring indirectly, developing standardized additionality thresholds, and low U.S. potential for emission reductions. The Reserve commissioned an issue paper for Truck Stop Electrification which can be downloaded below under the Issue Papers section.
Project Concept: Used Oil Initiative
Description: Re-refining used oil to reduce emissions from the production and use of virgin fuel oil.
Reserve Assessment: This project concept rates well for U.S. potential for emission reductions and availability of quantification methodologies but significant challenges include the emission reductions occurring indirectly and under proposed U.S. caps on GHG emissions, standardizing additionality and baseline determinations, data availability for quantification and establishing additionality thresholds, and accurate and cost-effective monitoring techniques.
Project Concept: Wood Waste Gasification
Description: Converting carbon-containing waste, such as wood waste, into a synthesis gas (syngas) using an oxygen-constrained, high temperature process. Emission reductions result by diverting waste from landfills (avoided methane emissions) and the syngas can also be used to displace natural gas.
Reserve Assessment: This project type rates well for additionality of the avoided methane emission reductions, standardizing additionality and baseline determinations, availability of quantification methodologies, and availability of data for quantification and establishing additionality thresholds but challenges include very limited U.S. potential for emission reductions and accurate and cost-effective measurement and monitoring techniques. Also, emission reductions from the displacement of natural gas are indirect reductions and fall under proposed U.S. caps on GHG emissions.
Issue Papers
From time to time, the Reserve commissions issue papers on potential project types. An issue paper assesses possible issues with developing a standardized protocol for a project type, including an evaluation of potential approaches to GHG emission quantification; exploration of options for defining eligible project activities; evaluation of approaches to setting project boundaries; and assessment of the availability of datasets and other pertinent information.
Please expand the issue paper titles below to download completed issue papers and read the Reserve’s determination on the protocol development potential for each project type.
Project Type: Aerobic and Anaerobic Bioreactors
Issue Paper: Completed — Download PDF
Assessment: Aerobic – Good potential; Anaerobic – Challenging
Remarks: This issue paper covers two project types, each with a separate potential for project protocol development. Aerobic bioreactors (in-situ composting) hold promise as a project type. The additionality is relatively clear, though there is the potential for this activity to preclude regulatory obligations that would have taken effect as NMOC emissions increased in the absence of the project. The potential for GHG reductions is great, and other methodologies exist that the Reserve could use in the development process. There are methodological challenges around the quantification of the baseline emissions and the measurement and quantification of project emissions. The project opportunities are abundant in the U.S. as a whole, but it is not clear that there would be much opportunity in California, due to the strict regulatory baseline.
Anaerobic bioreactors present a similarly large GHG reduction potential, with the added benefit of the production of large quantities of landfill gas that can be put to beneficial use. However, this gas production would not only necessitate a more complex performance standard to ensure achievement of reductions beyond “business as usual,” but it also presents challenges regarding regulatory additionality (anaerobic bioreactors are required to capture and control landfill gas). There would be increased methodological challenges for this type, especially regarding the temporal mismatch between baseline and project emissions.
Project Type: Blended Cement Production
Issue Paper: Completed — Download PDF
Assessment: Limited U.S. potential
Remarks: Although there is significant potential for emission reductions from using blended cement in the United States, most or all of the emissions from cement plants and/or concrete batch plants are likely to be capped in the near future (e.g., 2012 in California, 2015 under federal proposals). Furthermore, higher-blend cement is often a cheaper alternative than standard blends; as the issue paper makes clear, institutional, contractual, market-structure, and regulatory barriers stand in the way of greater use of blended cement. It is not clear that voluntary offset credits would be sufficient to overcome these barriers in the limited time available for crediting before the likely onset of cap-and-trade regulation.
Project Type: Boiler Efficiency Improvements
Issue Paper: Completed — Download PDF
Assessment: Promising
Remarks: Boiler efficiency projects are amenable to standardized baselines and additionality determinations, and standardized protocols for U.S. projects have already been developed (RGGI, Climate Leaders). There is significant technical potential for reductions, especially for industrial and commercial boilers (> 75 million tons CO2/year). Although GHG emissions from boilers are likely to be capped (as early as 2012 for large industrial boilers; 2015 for others), there may be cost-effective potential for accelerating improvements in boiler efficiency through offset crediting prior to cap-and-trade. The Reserve is conducting further examination into project costs before making a final decision on protocol development.
Project Type: Bus Fleet Upgrades
Issue Paper: Completed — Download PDF
Assessment: Standardized protocol would be difficult; possible limited potential
Remarks: Although this is otherwise a promising project type, the issue paper indicates that limitations in national-level data point to the need to develop fleet-specific performance standards for baseline and additionality determination. Furthermore, bus fleet emissions would be capped under some U.S. policy proposals as early as 2015; it is not clear given the potential cost and time required for implementation of bus fleet upgrade projects whether offset credits would significantly accelerate their development prior to the onset of cap-and-trade regulation.
Project Type: Bus Rapid Transit
Issue Paper: Completed — Download PDF
Assessment: Not promising in U.S.
Remarks: Based on the issue paper, Reserve staff believe there is limited cost-effective potential for this type of project in the United States (without subsidy, the typical cost would be on the order of thousands of dollars per ton of CO2 reduced). In addition, this type of project is not clearly amenable to standardized baselines or additionality tests. Finally, as the paper indicates, bus fleet emissions would be capped under some U.S. policy proposals as early as 2015; it is not clear given the cost hurdles and lead times for development of BRT projects whether offset credits would significantly accelerate development of these kinds of projects prior to the onset of cap-and-trade regulation.
Project Type: Methane Avoidance from Composting
Issue Paper: Completed — Download PDF
Assessment: Ready for protocol development
Remarks: Composting projects offer excellent potential for developing standardized baselines and additionality tests depending on the waste stream considered and operation (best management practices) of the composting facility. Eligible organic waste streams identified in the issue paper for composting projects include municipal solid waste (MSW) food and food soiled paper waste. Developing this project type closely follows the work completed for the Organic Waste Digestion Project Protocol since both project types involve diverting organic waste streams from disposal in a landfill. This issue paper led to the development of the Organic Waste Composting Project Protocol.
Project Type: Operations and Maintenance of Natural Gas Transmission and Distribution Systems
Issue Paper: Completed — Download PDF
Assessment: Limited future potential for additional reductions; development of a standardized protocol would require intensive research and data collection on current industry practice
Remarks: There are a number of activities in the natural gas transmission and distribution (T&D) sector that could be good candidates for carbon offset crediting. For these activities, reduction opportunities are significant in magnitude, quantifiable, and cost-effective. However, many of these same activities have payback periods of short enough duration that they may become common practice in the absence of carbon offset revenue. Developing a performance standard that sufficiently ensures additionality of such projects would require more robust data concerning industry practice and emissions than is currently available in the public domain. Acquiring industry-wide data of this nature for each of the potential project types would be time and resource intensive. Notwithstanding current policy uncertainties, it is not clear whether offset credits would significantly accelerate candidate project activities (beyond the already favorable economics) prior to the onset of cap-and-trade or other regulations that might affect their rate of implementation. Given the potential cost and time required for development of project protocols, the Reserve has decided not to develop a protocol for natural gas T&D projects at this time.
Project Type: Soil Carbon Sequestration of Biochar
Issue Paper: Completed — Download PDF
Assessment: Further research needed for protocol development
Remarks: Biochar production and use as a soil amendment appears to have potential for reducing greenhouse gas (GHG) emissions and sequestering carbon in soils. However, a number of issues may complicate the development of a biochar carbon offset protocol at this time. First, there are a great number of possible scenarios for the baseline use of biochar feedstocks, how those feedstocks could be converted into biochar by a project, and subsequently, how biochar could be incorporated into soil. The many possible baseline scenarios and project permutations create considerable challenges in developing a standardized methodology to determine additionality, account for leakage, and estimate secondary GHG emissions. Also, because the production and use of biochar can span multiple entities’ operational control, it may be difficult to verify baseline scenarios and net GHG emission reductions. These complexities could be addressed to some degree by focusing a protocol on a small number of eligible project types involving feedstocks with limited alternative uses and easily defined baseline conditions.
Second, net GHG emission reductions from biochar production and use are dependent on the composition of feedstocks and pyrolysis conditions used to produce biochar, as well as the soil type, microclimate, and cultivation system where biochar is applied. A carbon offset methodology would need to account for the GHG impacts of specific pyrolysis production methods. Currently this could be challenging, in particular because there is no existing mechanism to certify the origin and content of biochar once it reaches the site of application.
Finally, further research and testing is needed to develop rapid, accurate, and robust measurement techniques for quantifying the long-term decay rate of biochar, which is essential for determining the proportion of sequestered carbon that can be credited as a “permanent” offset. Even with such techniques, however, accurate estimates of long-term storage for a given project would take significant time to establish, resulting (under the paper’s proposed framework) in the gradual issuance of offset credits over time. From a financial standpoint, this could make many projects infeasible.
A promising methodological framework is proposed in the issue paper, focusing initially on a limited number of feedstocks and project types. Once various components of the framework are field tested and peer reviewed, development of a full carbon offset protocol may be feasible.
Project Type: Truck Stop Electrification
Issue Paper: Completed — Download PDF
Assessment: Low priority due to low emission reduction potential
Remarks: Truck stop electrification projects are amenable to standardized baselines and additionality determinations, and a robust protocol could likely be developed using existing methodologies. However, the emission reduction potential for these kinds of projects in the United States is not likely to be more than 5 million metric tons of CO2 per year, making this category a low priority for protocol development. In addition, the need for a carbon offset protocol for these projects would be obviated should an economy-wide emissions cap be established (such as that proposed under the American Clean Energy and Security Act). Finally, it is not clear that carbon offset revenues, under currently foreseeable market prices, would provide a sufficient return on investment for these types of projects absent significant additional funding. Thus, limited participation would be expected except in cases where external funding is available (e.g., government grants), in which case additionality would be difficult to credibly establish using standardized methods. Based on these findings, the Reserve has decided to not pursue development of a protocol for truck stop electrification at this time.
Project Type: Tidal Wetland Restoration
Issue Paper: Completed — Download PDF
Assessment: Not ready for protocol development
Remarks: As indicated in the issue paper, significant further research is required to develop accurate quantification and baseline estimation methods for this type of project. Also, developing standardized baselines and additionality tests would probably be difficult. The Reserve may re-evaluate this type of project in the future as research progresses.