Seize the business opportunities in the budding US carbon market

Eric Washburn, Legislative Counsel, Bipartisan Policy Center

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

The 21st Century Agriculture Policy Project, which is run by the Bipartisan Policy Center, examines cutting edge agriculture policy issues, like emerging carbon markets, and makes recommendations for federal policies to benefit agricultural producers.  The project, co-chaired by former Senate Majority Leaders Daschle and Dole, recnetly released a report on carbon markets entitled "The Role of Agriculture in Reducing Greenhouse Gas Emissions: Recommendations for a National Cap and Trade Program."

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

The most interesting developments have been the surge in interest in establishing a mandatory market in the United States among traditional agricultural producers.  The biggest challenge remains enacting mandatory cap and trade legislation and getting the details right.

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 ?

Those who stand to gain the most from cap and trade legislation are those companies already employing low carbon energy technologies and those entities that will be able to participate in the offset market.  Those worried about cap and trade legislation should get constructively engaged in the legislative process and help shape the legislation in such a fashion that it ultimately is fair and encourages a relatively gentle transition to a low arbon economy.

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

In five year's time, I would expect there to be a robust and thriving market in carbon offsets and allowances, with projects and technologies generating offsets that we cannot today even imagine.

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

There are two keys to building a truly global carbon market: first, we need to see much broader participation in mandatory cap and trade programs by all nations, and second, the rules for generating offset credits should be as consistent as possible from country to country so that there will be a great deal of confidence in the quality of offsets throughout the world and a relatively seamless international trading system.