Seize the business opportunities in the budding US carbon market

Leslie L. Durschinger, Principal, Terra Global Capital

 

How do you see the carbon market developing in USA over the next 5 years?

States such as CA and other will be well into implementation of their programs providing a path for completion of the details of a federal program. In anticipation of this, US markets for offsets will grow, we will see creditable standards the draw on CCAR, VCS and others being used for bi-lateral deals and carbon credits prices (for projects that will like be either accepted on state or a federal program will increase.

Where and what are the biggest opportunities in the carbon market in the USA?

Land-use and Agriculture for offsets (this shows my basis) and linking with programs outside the US

Major challenges to future growth of the American carbon market?

Getting clear enough signals from the emerging state and federal programs to provide clear signals to future regulated companies and allow companies that can generate offsets to make informed investment decisions now that will result in building a pipeline of reductions in the near-term.

What are the main risks involved in the market?

Regulatory uncertainly and large inconsistencies between state and federal programs and having programs that are closed to interaction with international programs.

Who will be most affected by new legislation and regulation?

Heavy polluters and industry that stand to benefit from large scale acceptance of offsets under the federal program

How will the developing American Carbon Market affect the global market?

Ultimately, as the largest capped country, pricing is likely to be driven off the US market.

What are the main barriers facing project developers looking to generate offset credits?

In our sector (particularly outside the US) it is early funding for projects, in the US carbon prices are still too low to support the higher costs to develop US based projects.

Key speakers to approach?

Me, land-use i.e. forestry
Key decision makers in Washington and political analysis who can lay out the scenarios of various bills, EIA and MIT did a studies, these authors might be interesting. If you want I can get their names.

Other key topics to include at the conference?

Offset providers including Forestry