Registry to Support Voluntary and Compliance Offset Markets Rachel Tornek PMR Workshop: Building Registries to Support the Next Generation of Carbon Markets September 23, 2015

Climate Action Reserve Established in 2001 by CA legislature –Voluntary offset project registry program since 2008 –California compliance offset project registry since 2012 Staff of 20 based in Los Angeles, CA 300 account holders 450 projects actively reporting or issued credits 65.8 million credits issued; 18 million retired International initiatives to support emerging carbon markets 2

3 Registry Software Platform and platform support provided by APX Primary objectives: –Credit issuance/tracking function for account holders –Project management –Transparency and disclosure for public System architecture is customizable and scalable Reserve staff review documentation, approve accounts/projects, issue credits

Types of Accounts and Users Account TypesUser Types Project DeveloperAccount Manager Trader/Broker/RetailerProject Contact Verification BodyBilling Contact ClientUsers Reviewer Aggregator Aggregation Participant 4

Public Reports Participating Companies Projects Project Offset Credits Issued Search Serial Numbers Retired Offset Credits Canceled Offset Credits Accounts Disclosed to Public 5

Example - Project Data Landfill project data screen

Example – Project Documentation 7

Example – Credit Holdings 8

Credit Serialization Format of serial numbers encodes project and registry information into the serial number Example: CAR-1-US CA to IdentifierDescription Originating RegistryAlphanumeric used to identify the registry originally issuing project credits Unit typeIdentifier of the type of offset credit issued Project CountryTwo-letter ISO country codes Project IDNumber assigned by the Reserve to identify the project; unique to originating registry Project TypeNumber identifying the project category Project Developer IDNumber assigned by Reserve for project developer; unique to the originating registry Project State AbbreviationTwo-letter state abbreviation VintageYear the emission reduction/removal occurred Batch NumberNumber assigned to each batch of offsets created; unique to originating reserve Unit Serial Block StartNumbers assigned by Reserve Unit Serial Block EndNumbers assigned by Reserve

Reserve Project Process Open an account Submit project Reduce emissions Verify the reductions Registered Credits issued Each reporting period Hold, sell, or retire credits Listed 10

Link to CA Compliance Market (Outsourcing) Accredited by ARB as an Offset Project Registry and Early Action Offset Program –Review projects –Provide technical assistance to project developers and verifiers –Audit verification bodies –Issue Early Action Offset Credits (CRT) and Registry Offset Credits (ROC) in registry Registries are not linked; credits are converted manually Different documentation available for voluntary vs. compliance projects 11

Link to CA CEQA (Full Reliance) Lead agency’s discretion to require offsets to mitigate for GHG impacts of project development Coastal Commission, Public Utilities Commission have required CAR offsets to be retired to mitigate projects Noted in retirement field in Reserve Registry No CEQA registry to link to 12

13 It’s What’s Behind the Registry REGISTRY PROTOCOLS: Standards for measurement, monitoring and verification TERMS OF USE & PROGRAM MANUAL: Overarching policies and procedures VERIFICATION PROGRAM MANUAL: V/VB Accreditation, training, processes PROGRAM STAFF: Review documentation, maintain registry, technical support

Thank you Rachel Tornek Vice President, Programs Climate Action Reserve