Seize the business opportunities in the budding US carbon market

Caitlin Sparks, Director, United States Market, The Gold Standard Foundation

What do you and your organization do in the Carbon Markets sector?

The gold standard certifies high-quality renewable energy/energy efficiency projects and credits that foster sustainable development internationally. Our standard is applicable in both the CDM compliance market and the voluntary carbon market.

What do you consider to be the most interesting developments and biggest challenges in the North American Carbon Market at this time?

The biggest challenge is the diversity of disparate regional initiatives occurring state to state coupled with the lack of federal guidance on clear standards and mechanisms for project implementation. The most interesting development is the current interest/momentum from both the public and private sectors, as well as an acute public awareness of the urgency of climate change.

If regulated emission reductions become mandatory in the US, who stands to be most affected by this, and what would you recommend to anyone worried about impending legislation?

This will depend entirely on what sectors are covered in a cap and trade, but obviously the biggest emitters -- utilities, manufacturers -- will be deeply impacted. I recommend that any actor, even those with smaller footprints like the tech sector, begin readying for compliance by participating in the voluntary market now, while being conservative and transparent in public communication regarding their current reduction/abatement efforts.

How do you see the North American Carbon Market looking in 5 years' time?

The voluntary market tripled in growth in the last year. I would expect to see the North American Carbon Market experiencing similar growth, although likely in a compliance and not voluntary scheme.

What do you see as key to building a truly global carbon market?

Linkage with other existent compliance schemes, participation in Kyoto, development and linkage of key pieces of infrastructure like registries for credit retirement, inclusion of forestry/landuse standards, emergence of just a handful of well-established, well-regarded standards