Frankfurt-based 3C joined the group through its Washington DC office, where it and other CERP members meet with Congressional staff and other policymakers to shape the upcoming US carbon market, promoting the use of offsets or emissions reductions achieved outside the electricity sector.
"CERP includes utilities, carbon asset managers and liquidity providers – basically the top players involved in the carbon market,” 3C Director Sascha Lafeld told Point Carbon.
He added that unlike similar coalitions aiming to influence Congress on issues surrounding carbon credits for offset projects, the group also includes major emitters such as utilities AEP and Dominion as well as natural gas and pipeline company El Paso.
“These companies will have to cut millions of tonnes (of carbon dioxide) under upcoming US carbon constraints, so they have an interest in shaping this policy," Lafeld said, adding: “We are doing all this with a view to the future compliance system in the US.”
Launched at the UN climate negotiations in Bali last year, the CERP’s goal “is to inform policymakers and public about offset projects, especially in crucial issues such as which quality benchmarks should be applied,” Lafeld said.
He said the group, which also includes other offset providers such as Ecosecurities, Blue Source and MGM was created “when it became increasingly clear that there would be carbon constraints on the US economy" and advocates allowing use of offset credits for companies to meet compliance targets under carbon regulations such as the cap-and-trade legislation currently making its way through the US senate.
The coalition will work to inform policymakers through letters to senators and other traditional lobbying activities, according to Lafeld, who argued that lack of information on market mechanisms contributed in part to the price collapse in Europe carbon market two years ago.
“We saw in Europe that market know-how was very useful to the policymakers and we hope to contribute in this regard in the US,” he said.
Washington DC
