Thomas J. Timbario, Vice President, Alliance Technical Services Inc gives a quick overview of the US voluntary carbon markets. Thomas is amongst the presenters at Voluntary Carbon Markets, New York.

What do you and your organization do in the Carbon Markets sector?
ATS develops and implements effective and sustainable carbon management programs for its clients.

What do you consider to be the most interesting developments and biggest challenges in the American voluntary carbon market at this time?
Most interesting development is the creation of regional U.S. GHG reduction initiatives, although these are not purely voluntary, because of the impatience in waiting for the U.S. Federal Government to establish a national approach to GHG reduction commitments. An interesting development regarding voluntary measures is the burst of attention to flawed and sometimes incredible claims, and the need for order. Biggest challenge is to consolidate the plethora of protocols and guidelines into a single set of processes and standards that can be followed irrespective of the end use of the offset.


What are the challenges facing standardization of the market?
The biggest challenge is the existing plurality of protocols and guidelines and the plurality of additional guidance documents in development. There is also a need for development of a standardized set of “bookkeeping” practices (not protocols) for establishing and maintaining the credibility of GHG reductions that can be continuously ascertained, and for more specific methodologies regarding baselines and additionality.

If regulated emission reductions become mandatory in the US, what does the future hold for the voluntary market?
That depends on the comprehensiveness of the regulation – the scope of coverage. In all probability, lots of sources will not be covered by a mandatory program in the U.S. The voluntary market will likely continue to have a role, in the same manner that voluntary reductions of pollutant emissions have a role. What will be important to voluntary programs/measures is the ability to have the reductions counted for “credit” to aid or supplement any mandatory reductions.


What are the barriers to project developers looking to generate offsets?
The main barrier is the uncertainty about which procedures and protocols to follow and the lack of specific methodologies for many types of projects. A developer following one process or protocol may ultimately want to use the offset in another program instead, but it may not meet the requirements of the other program. Moreover, as “holes” in the protocols are closed, such as the need to prove or demonstrate that the offsets are worthy of having continuing value, some documenting work, if not projects themselves, undertaken without adequate analysis, credibility and foresight, may turn out to be wasted.


What safeguards are required to ensure sustainable growth?
The most effective safeguard to achieving sustainable growth is to get everyone on the same page with a system for establishing proof of maintained GHG reductions via effective bookkeeping - estimating, calculating and measuring GHGs - and establishment of specific criteria for determining baseline values under dynamic business operating conditions.

ENDS