CA issues new cap and trade rules

These are the most recent rules which were approved, though they will not be finalized for a few days.

CA ARB releases Supplement to AB 32 Scoping Plan

The blog title hyperlinks you to an overview. If you want the actual supplement, it is here:

http://www.arb.ca.gov/cc/scopingplan/document/Supplement_to_SP_FED.pdf

CA Senate Committee on A.B. 32 Market Mechanisms Overview Today

Today, Chairman of the California Air Resources Board Mary D.
Nichols will address the Senate Select Committee on the
Environment, the Economy, and Climate Change during an
informational hearing titled “A.B. 32 Market Mechanisms
Overview”.

The hearing is scheduled to start at 3:30 p.m. in Room 3191 in
the California State Capitol.
It will be broadcast and televised. For details go to:
http://senate.ca.gov/todaysevents

The Chairman’s testimony will be posted at
http://www.arb.ca.gov/cc/capandtrade/capandtrade.htm
when the committee adjourns.

Courts OK CA cap and trade work to continue

This article (hyperlinked in blog title) suggests California regulators may be planning on a stall court campaign for the next rounds of legal challenges, hoping that creating a cap and trade program may help repel any eventual challenge.

Sectoral (and REDD) language in ARB's Regulations Order

The 188-page ARB rule is hyperlinked in the blog title bar. TFG has also transcribed the portion of the decision on sectoral crediting, where REDD is located. Below is our unofficial transcription of the relevant sections (from pages 176 to 178).

§ 95991. Sector-Based Offset Credits.

Sector-based offset credits may be generated through reduced or avoided GHG emissions from within, or carbon removed and sequestered from the atmosphere by, a specific sector in a particular jurisdiction. The Board may consider for acceptance compliance instruments issued from sector-based offset crediting programs that meet the requirements set forth in section 95994 and originate from developing countries or from subnational jurisdictions within those developing countries, except as specified in subarticle 13.

§ 95992. Procedures for Approval of Sector-Based Crediting Programs.

The Board may approve a sector-based crediting program in an eligible jurisdiction after public notice and opportunity for public comment in accordance with the Administrative Procedure Act (Government Code section 11340 et seq.). Provisions set forth in this article shall specify which compliance instruments issued by an approved sector-based crediting program may be used to meet a compliance obligation under this Article.

§ 95993. Sources for Sector-Based Offset Credits.

Sector-based credits may be generated from:

(a) Reducing Emissions from Deforestation and Forest Degradation (REDD) Plans; and

(b) Reserved for other sources of sector-based credits.

§ 95994. Requirements for Sector-Based Offset Crediting Programs.

(a) General Requirements for Sector-Based Crediting Programs. The Board may consider for approval a sector-based crediting program which may include the following sectoral requirements:

1. Sector Plan. The host jurisdiction has established a plan for reducing emissions from the sector.

2. Monitoring, Reporting, Verification, and Enforcement. The program includes a transparent system that regularly monitors, inventories, reports, verifies, and maintains accounting for emission reductions across the program’s entire sector, as well as maintains enforcement capability over its reference activity producing credits.

3. Offset Criteria. The program has requirements to ensure that offset credits generated by the program are real, additional, quantifiable, permanent, verifiable and enforceable.

4. Sectoral Level Performance. The program includes a transparent system for determining and reporting when it meets or exceeds its crediting baseline(s), and evaluating the performance of the program’s sector during each program’s crediting period relative to the business as usual or other emissions reference level.

5. Public Participation and Participatory Management Mechanism. The program has established a means for public participation and consultation in the program design process.

6. Nested Approach. If applicable, the program includes:

(A) Offset project-specific requirements that establish methods to inventory, quantify, monitor, verify, enforce, and account for all project-level activities

(B) a system for reconciling offset project-based GHG reductions in sector-level accounting from the host jurisdiction.

(b) Sector-Specific Requirements. Pursuant to section 95996, specific sectors may have specific requirements unique to that sector.

§ 95995. Quantitative Usage Limit.

Sector-based offset credits approved by ARB for compliance pursuant to section 95821(d) are subject to the quantitative usage limit specified in section 95854.

§ 95996. Reserved for Sector-Specific Requirements

§ 95997. Reserved for Approved Sector-Based Crediting Programs.

California's Historic Vote on Climate Change and RED

Tonight at 7:07 pm, the California Air Resources Board voted to adopt the cap and trade regulations for AB32, California's global warming law. The final vote passed 9 -1.

The new regulations include, among many things, strong preliminary support for sub-national RED international emissions reductions.

Just before passing the new rules (resolution 1043), many CARB board members highlighted that more work lays ahead, in terms of details, the operation of a market, protocols, and oversight. The overarching suggestion from Board members to the staff was a call for transparency in implementation of this new market. "If things go bad, they can go really bad" said board member Sperling, as he called on ARB staff to report back to the Board on ensuring appropriate market oversight.

Anyone watching CARB's process today should be proud of the integrity and openness behind this new bold direction for California. Said CARB member Berg near the end of the meeting, "today is the beginning of a new level of details".

Congratulations CARB Board members, staff and of course California voters! A recent poll shows 64% of surveyed voters support the cap and trade parts of California's bill.

Historic Cancun Agreement for Sub-National REDD+

The Tropical Forest Group is still reviewing the final negotiating text (the most recent electronic version is hyper-linked in the title), but it is clear:

1) The UNFCCC process is alive and well;

2) REDD+, including interim sub-national REDD+, is one of the most important United Nations decisions adopted by consensus since 1992's Rio Agreements;

3) It is a supersonic historic accomplishment for a wounded process that citizens worldwide should be proud of;

3) This agreement, combined with a REDD+ Mechanism in the Copenhagen Accord and California's recent decision to move forward with sectoral REDD crediting, and all the elements are in place for profound positive developments in the conservation of tropical forests.

4) The participation and role of forest communities, local people, indigenous peoples, and ordinary citizens in the subsequent decision-making will ultimately determine whether REDD+ will succeed.

5) You should get up and dance, this is epic. TFG has been working on sub-national REDD+ and the importance of setting forest reference levels for years, because of their importance.

(Below is TFG's transcription of the REDD+ parts of the LCA text of the Cancun Agreement, which is yet to be officially published. We have included the dedicated REDD+ paragraphs and the two relevant Annexes. This is not official text.)

Outcome of the work of the Ad Hoc Working Group on long- term Cooperative Action under the Convention

III C. Policy approaches and positive incentives on issues relating to reducing emissions from deforestation and forest degradation in developing countries; and the role of conservation, sustainable management of forests and enhancement of forest carbon stocks in developing countries

Affirming that, in the context of the provision of adequate and predictable support to developing country Parties, Parties should collectively aim to slow, halt and reverse forest cover and carbon loss, according to national circumstances, consistent with the ultimate objective of the Convention, as stated in Article 2,

Also affirming the need to promote broad country participation in all phases described in paragraph 73 below, including through the provision of support that takes into account existing capacities,

68. Encourages all Parties to find effective ways to reduce the human pressure on forests that results in greenhouse gas emissions, including actions to address drivers of deforestation;

69. Affirms that the implementation of the activities referred to in paragraph 70 below should be carried out in accordance with annex I to this decision, and that the safeguards referred to in paragraph 2 of annex I to this decision should be promoted and supported;

70. Encourages developing country Parties to contribute to mitigation actions in the forest sector by undertaking the following activities, as deemed appropriate by each Party and in accordance with their respective capabilities and national circumstances:

(a) Reducing emissions from deforestation;

(b) Reducing emissions from forest degradation;

(c) Conservation of forest carbon stocks;

(d) Sustainable management of forest;

(e) Enhancement of forest carbon stocks;

71. Requests developing country Parties aiming to undertake activities referred to in paragraph 70 above, in the context of the provision of adequate and predictable support, including financial resources and technical and technological support to developing country Parties, in accordance with national circumstances and respective capabilities, to develop the following elements:

(a) A national strategy or action plan;

(b) A national forest reference emission level and/or forest reference level (6) or, if appropriate, as an interim measure, subnational forest reference emission levels and/or forest reference levels, in accordance with national circumstances, and with provisions contained in decision 4/CP.15, and with any further elaboration of those provisions adopted by the Conference of the Parties;

(c) A robust and transparent national forest monitoring system for the monitoring and reporting of the activities referred to in paragraph 70 above, with, if appropriate, subnational monitoring and reporting as an interim measure,(7) in accordance with national circumstances, and with the provisions contained in decision 4/CP.15, and with any further elaboration of those provisions agreed by the Conference of the Parties;

(d) A system for providing information on how the safeguards referred to in annex I to this decision are being addressed and respected throughout the implementation of the activities referred to in paragraph 70, while respecting sovereignty;

72. Also requests developing country Parties, when developing and implementing their national strategies or action plans, to address, inter alia, drivers of deforestation and forest degradation, land tenure issues, forest governance issues, gender considerations and the safeguards identified in paragraph 2 of annex I to this decision, ensuring the full and effective participation of relevant stakeholders, inter alia, indigenous peoples and local communities;

73. Decides that the activities undertaken by Parties referred to in paragraph 70 above should be implemented in phases beginning with the development of national strategies or action plans, policies and measures, and capacity-building, followed by the implementation of national policies and measures and national strategies or action plans that could involve further capacity-building, technology development and transfer and results-based demonstration activities, and evolving into results-based actions that should be fully measured, reported and verified;

74. Recognizes that the implementation of the activities referred to in paragraph 70 above, including the choice of a starting phase as referred to in paragraph 73 above, depends on the specific national circumstances, capacities and capabilities of each developing country Party and the level of support received;

75. Requests the Subsidiary Body for Scientific and Technological Advice to develop a work programme on the matters referred to in annex II to this decision;

76. Urges Parties, in particular developed country Parties, to support, through multilateral and bilateral channels, the development of national strategies or action plans, policies and measures and capacity-building, followed by the implementation of national policies and measures, and national strategies or action plans, that could involve further capacity building, technology development and transfer and results-based demonstration activities including consideration of the safeguards referred to in paragraph 2 of annex I to this decision, taking into account the relevant provisions on finance including those relating to reporting on support;

77. Requests the Ad Hoc Working Group on Long-term Cooperative Action under the Convention to explore financing options for the full implementation of the results-based actions (8) referred to in paragraph 73 above, and to report on progress made, including any recommendations for draft decisions on this matter, to the Conference of the Parties at its seventeenth session;

78. Also requests Parties to ensure coordination of the activities referred to in paragraph 70 above, including of the related support, particularly at the national level;

79. Invites relevant international organizations and stakeholders to contribute to the activities referred to in paragraphs 70 and 78 above.

Footnotes

6 In accordance with national circumstances, national forest reference emission levels and/or forest reference levels could be a combination of subnational forest reference emissions levels and/or forest reference levels.

7 Including monitoring and reporting of emissions displacement at the national level, if appropriate, and reporting on how displacement of emissions is being addressed, and on the means to integrate subnational monitoring systems into a national monitoring system.

8 These actions require national monitoring systems.

Annex I. Guidance and safeguards for policy approaches and positive incentives on issues relating to reducing emissions from deforestation and forest degradation in developing countries; and the role of conservation, sustainable management of forests and enhancement of forest carbon stocks in developing countries

1. Activities referred to in paragraph 70 of this decision should:

(a) Contribute to the achievement of the objective set out in Article 2 of the Convention;

(b) Contribute to the fulfilment of the commitments set out in Article 4, paragraph 3, of the Convention;

(c) Be country-driven and be considered options available to Parties;

(d) Be consistent with the objective of environmental integrity and take into account the multiple functions of forests and other ecosystems;

(e) Be undertaken in accordance with national development priorities, objectives and circumstances and capabilities and should respect sovereignty;

(f) Be consistent with Parties’ national sustainable development needs and goals;

(g) Be implemented in the context of sustainable development and reducing poverty, while responding to climate change;

(h) Be consistent with the adaptation needs of the country;

(i) Be supported by adequate and predictable financial and technology support, including support for capacity-building;

(j) Be results-based;

(k) Promote sustainable management of forests;

2. When undertaking activities referred to in paragraph 70 of this decision, the following safeguards should be promoted and supported:

(a) Actions complement or are consistent with the objectives of national forest programmes and relevant international conventions and agreements;

(b) Transparent and effective national forest governance structures, taking into account national legislation and sovereignty;

(c) Respect for the knowledge and rights of indigenous peoples and members of local communities, by taking into account relevant international obligations, national circumstances and laws, and noting that the United Nations General Assembly has adopted the United Nations Declaration on the Rights of Indigenous Peoples;

(d) The full and effective participation of relevant stakeholders, in particular, indigenous peoples and local communities, in actions referred to in paragraphs 70 and 72 of this decision;

(e) Actions are consistent with the conservation of natural forests and biological diversity, ensuring that actions referred to in paragraph 70 of this decision are not used for the conversion of natural forests, but are instead used to incentivize the protection and conservation of natural forests and their ecosystem services, and to enhance other social and environmental benefits; (1)

(f) Actions to address the risks of reversals;

(g) Actions to reduce displacement of emissions.

Footnotes. 1 Taking into account the need for sustainable livelihoods of indigenous peoples and local communities and their interdependence on forests in most countries, reflected in the United Nations Declaration on the Rights of Indigenous Peoples, as well as the International Mother Earth Day.

Annex II. Subsidiary Body for Scientific and Technological Advice work programme on policy approaches and positive incentives on issues relating to reducing emissions from deforestation and forest degradation in developing countries; and the role of conservation, sustainable management of forests and enhancement of forest carbon stocks in developing countries

In the development of its work programme, the SBSTA is requested to:

(a) Identify land use, land-use change and forestry activities in developing countries, in particular those that are linked to the drivers of deforestation and forest degradation, to identify the associated methodological issues to estimate emissions and removals resulting from these activities, and to assess their potential contribution to the mitigation of climate change, and report on the findings to the Conference of the Parties at its eighteenth session on the outcomes of the work referred to in this paragraph;

(b) Develop modalities relating to paragraphs 71 (b) and (c), and guidance relating to paragraph 71 (d) of this decision, for consideration by the Conference of the Parties at its seventeenth session;

(c) Develop as necessary, modalities for measuring, reporting and verifying anthropogenic forest-related emissions by sources and removals by sinks, forest carbon stocks, forest carbon stock and forest area changes resulting from the implementation of activities referred to in paragraph 70 of this decision, consistent with any guidance for measuring, reporting and verification of nationally appropriate mitigation actions by developing country Parties agreed by the Conference of the Parties, taking into account methodological guidance in accordance with decision 4/CP.15, for consideration by the Conference of the Parties at its seventeenth session;

Text of CA, Chiapas, Acre MOU on REDD (11/16/2010)

MEMORANDUM OF UNDERSTANDING ON ENVIRONMENTAL COOPERATION BETWEEN THE STATE OF ACRE OF THE FEDERATIVE REPUBLIC OF BRAZIL, THE STATE OF CHIAPAS OF THE UNITED MEXICAN STATES, AND THE STATE OF CALIFORNIA OF THE UNITED STATES OF AMERICA

The State of Acre of the Federative Republic of Brazil, the State of Chiapas of the United Mexican States, and the State of California of the United States of America, hereinafter referred to as "the Parties":

ACKNOWLEDGING the friendship and excellent cooperation among the governments of the Federative Republic of Brazil, the United Mexican States, and the United States of America;

TAKING INTO ACCOUNT the global nature of environmental problems and the ability of joint efforts to enhance joint policies for environmental protection and sustainable natural resources, especially reducing emissions from deforestation;

RATIFYING the willingness to promote new mechanisms of dialogue and agreement that lead to the strengthening of relationships and productive mutual action;

CONSIDERING the opportunities for collaboration between the State of Acre, the State of Chiapas, and the State of California in combating climate change;

RECOGNIZING the importance and value of implementing climate mitigation and adaptation actions at sub-national levels, both in their own right and as a means to furthering national and international efforts;

Recognizing further the importance of focusing on issues of common interest between the Parties, such as reducing greenhouse gas emissions in the forest sector by preserving standing forests and sequestering additional carbon through the restoration and reforestation of degraded lands and forest, and through improved forest management practices;

Recognizing further that the Governors' Climate and Forests (GCF) Task Force is a unique subnational collaboration between 14 states and provinces from the United States, Brazil, Indonesia, Nigeria, and Mexico that seeks to integrate Reducing Emissions from Deforestation and Forest Degradation (REDD) and other forest carbon activities into emerging greenhouse gas (GHG) compliance regimes in the United States and elsewhere. As such, the GCF represents an important foundation for identifying enhanced partnerships.

EXPRESS their willingness to cooperate, in the search of joint actions that improve environmental quality and optimize the quality of life in the State of Acre, the State of Chiapas, and the State of California.

ARTICLE 1

This Memorandum of Understanding is intended to promote broader cooperation regarding environmental issues among the Parties within their respective purview and based on principles of reciprocity, information exchange and mutual benefit.

ARTICLE 2

The Parties will coordinate efforts and promote collaboration for environmental management, scientific and technical investigation, and capacity building, through cooperative efforts focused particularly on:

a. Reducing greenhouse gas emissions from deforestation and land degradation - otherwise known as "REDD" - and sequestration of additional carbon through the restoration and reforestation of degraded lands and forests, and through improved forest management practices.

b. Developing recommendations together to ensure that forest-sector emissions reductions and sequestrations, from activities undertaken at the sub-national level, will be real, additional, quantifiable, permanent, verifiable and enforceable, and capable of being recognized in compliance mechanisms of each party's state.

ARTICLE 3

In furtherance of the priorities referenced in Article 2, the Parties will develop the following method of cooperation, among others:


a. The states will develop a Sub-national REDD Working Group that will convene monthly between December 2010 through October 2011 to begin the process for developing a state to state sectoral REDD linkage recommendation that will provide the foundation for an eventual submittal to the California Air Resources Board, as defined in California's cap and trade program (CCR, Title 17, Sections 95991-95997) and to other necessary state entities to approve such a recommendation amongst the Parties. This group will weigh the legal, technical and economic considerations in developing sector-based credits generated by the Parties. This group should include no more than 15 representatives with experience developing sector-based REDD programs or directly involved with the states supplying the credits, or from the California state government. The process should be led by a facilitator to ensure the group focuses on meeting the needs of ARB in their existing cap and trade regulations. Membership should be limited to a small number of representatives of each Party, a national representative from the selected states;, a limited number of NGO representatives and expert advisors including one on the social dimension of greenhouse gas mitigation, but no more than 2 project based standard organization representatives, and a facilitator.

b. Other methods developed between the Parties.

ARTICLE 4

The Parties will cooperate in the development of a workplan for the REDD Partnership Working Group containing cooperative actions.

The workplan will include all necessary provisions for implementing the cooperation activity agreed upon, including its scope, coordination and administration, resource allocation, expert and professional exchanges, administrative issues, and any other information deemed necessary for achieving the objective of this Memorandum of Understanding.

Independent of the formalization of work plans the Parties agree that collaboration proposals can be presented that allow the parties to optimize outcomes for achieving the objective of this Memorandum of Understanding.

ARTICLE 5

In activities of cooperation and information exchanges, if Parties deem it convenient, private and public sectors may be invited to participate, as well as public, academic and research institutions, or any other organization, as long as they can directly contribute to the achievement of the objective of this Memorandum of Understanding. Other states are also encouraged to participate as Observers to working group discussions.

ARTICLE 6

The Parties will finance activities referred to in this Memorandum of Understanding with resources allocated in their respective budgets, as these resources become available and as stipulated by their own legislation processes. Each Party will pay for expenses related to its own participation, unless alternative financial mechanisms can be used for specific activities, as appropriate and as approved by their respective appointing authority.
ARTICLE 7

Confidential or protected information, material or equipment will not be subject to transfer pursuant to this Memorandum of Understanding.

If information, material and equipment is identified to require or to potentially require protection and classification, during the development of cooperation activities as stated in this Memorandum of Understanding, the Parties will inform corresponding authorities and will establish the appropriate protections in writing. Transfer or use of information, material and equipment not protected or classified which is controlled by any of the Parties, shall be done in accordance with applicable laws of each state, province, nation, or institution and must be properly identified.

ARTICLE 8

Officials designated by each Party to implement cooperation activities under this Memorandum of Understanding will continue working for the party to whom they belong, and no labor relations will be created with any other Party to this Memorandum of Understanding.

Cooperative activities under this Memorandum of Understanding will in no way change the original employer/employee relationship of the officials working together under this Memorandum of Understanding.

The Parties will make all necessary arrangements with corresponding authorities to facilitate customs entrance and exit of participants officially taking part in cooperation projects under this Memorandum of Understanding. These participants will be bound by migration, fiscal, customs, sanitary and national security provisions existing in each respective country and are not authorized to do any other activity without previous permission from the appropriate authorities.

The Parties will ensure that their official representatives participating in cooperation actions have medical, liability and life insurance, to pay costs related to damage repair or indemnification, in case that an accident may occur as a result of cooperation activities related to the execution of this Memorandum of Understanding.

ARTICLE 9

Any differences of interpretation, management or execution of this Memorandum of Understanding will be resolved by mutual understanding of the Parties.

ARTICLE 10

This Memorandum of Understanding can be modified by mutual consent of the Parties in writing, specifying the date of the entry into force of any such modifications.

ARTICLE 11

Termination of this Memorandum of Understanding can be made by any of the Parties, through written communication directed to the other Parties with thirty (30) days advance notice.

ARTICLE 12

The Parties acknowledge that this Memorandum of Understanding is only intended to provide for cooperation between the Parties, and does not create any legally binding rights or obligations. To the extent any other provision of this Memorandum of Understanding is inconsistent with this paragraph, this paragraph shall control.

Executed at the University of California, Davis, during the Governors' Global Climate Summit 3, United States of America, on November sixteen of two thousand and ten, in three originals in the English language.


FOR THE STATE OF CALIFORNIA OF THE UNITED STATES OF AMERICA

________________________________
Governor Arnold Schwarzenegger




FOR THE STATE OF ACRE IN THE FEDERATIVE REPUBLIC OF BRAZIL

________________________________
Governor Arnóbio Marques de Almeida Júnior



FOR THE STATE OF CHIAPAS
IN THE UNITED MEXICAN STATES

________________________________
Governor Juan Sabines Guerrero


WITNESSED BY:


Linda Adams
Secretary of the California Environmental Protection Agency and Chair of the Climate Action Reserve

Mary Nichols
Chair of the California Air Resources Board


Edvaldo Magalháes
Deputy of Acre State and
President of Legislative Assembly
Of Acre State

Lourdes A. Lopez Moreno
Secretary for Environment, Housing and Natural History State of Chiapas

Ricardo Martinez
Deputy Secretary for Environmental Justice, Tribal and Border Affairs State of California Environmental Protection Agency

TFG Briefing Note on Proposed AB 32 REDD regulations

TFG has produced a short 1-page briefing note on the key highlights contained in the recently proposed AB 32 rules. There is a pdf link from the blog title, and it is reproduced below (except the quantitative box in the pdf).
.


TFG Briefing Note on Proposed CA AB 32 Regulations
(November 2010)

Summary: In October 2010, the California Air Resource Board (ARB) released draft regulations to implement AB 32, California’s global warming law. ARB will vote on these regulations on December 16, 2010. The proposed regulations and accompanying staff report bolster prospects for up to 74 million tons (CO2 equivalent) in compliant demand for emission reductions from reducing deforestation in developing countries (REDD). The proposed regulations are the largest, most advanced global outlet for compliance REDD credits from nested projects or jurisdictional policies.

How can offsets enter the CA cap and trade system?
Offsets can enter California’s system either through ARB approved protocols or ARB approved programs. All ARB approved protocols have been developed by the Climate Action Reserve, are for domestic offsets, and are eligible for early action crediting. ARB approved programs will include linked programs with partner compliance entities (such as the Western Climate Initiative) and sector-based offsets. Currently, REDD is the only offset category explicitly designated as eligible for sector-based crediting.

How many potential REDD credits?
The new proposed regulations allow for 8% of a compliance entity’s obligations to be met with offsets. Of these, sector-based credits will likely be restricted to 25%/25%/50% of the offset limit for 1st/2nd/3rd compliance periods, respectively. This translates into a maximum REDD offset demand of 74.3 million tons of CO2 from 2012 to 2020 (see chart).

Sector-based offsets: jurisdiction-scale developing country offsets
To be eligible for sector offsets in California’s program, an entire sub-national jurisdiction’s sector such as cement or forestry, must have emissions below a crediting baseline. The crediting baseline itself must be below a historical average of emissions for that sector in that jurisdiction. REDD is the only category explicitly proposed for sector-based credits in the regulations. More detailed rules will be needed in coming years and these will likely be informed by the Governors Climate & Forests Taskforce (GCF).

Proposed California Sectoral Requirements for REDD
1. Historical deforestation emissions must be calculated for “gross” deforestation over the past 10 years.
2. Jurisdictions & ARB must approve plans to lower emissions below historical emissions by 2020.
3. Forest carbon inventories must follow IPCC guidance, likely at Tier 2 or higher.
4. Jurisdictions that use nested-REDD projects must have accounting systems to reconcile nested project-based GHG reductions with sector-level accounting.
5. Jurisdictions must plan to retire and ensure permanence of the REDD credits.
6. Mechanisms must be in place for public consultation and participation in the program design.

CA's cap and trade program accelerates

The carbon scheme would cap emissions of large emitters including power plants, refineries, cement plants and other big factories at 15 percent below today’s levels by 2020, and allow companies to buy and sell emissions allowances to meet their goal, according to the article. The scheme would also allow limited use of high-quality offsets outside of capped sectors to cover a portion of the overall emissions reductions, according to CARB.