Toolkit Tags

Carbon Markets

In the United States, several land trusts are already engaging in the carbon market. Advocacy efforts that support the development of legal frameworks that enable cap and trade or carbon offsets can further expand these programs throughout the United States and connect to international efforts to decrease carbon emissions through market mechanisms.

Developing Low Carbon Financing Mechanisms

While these developing low carbon finance mechanisms have not yet been incorporated into land trust funding models in the United States, as markets grow and enabling policies expand, opportunities to leverage such funding to support existing management efforts may be forthcoming.

Development of Carbon Bonds

Climate “bonding” describes the use of fixed-income financial instruments that are linked in to climate change solutions. Climate bonds are a relatively new monetization of greenhouse gas reduction services, but their availability and use is growing rapidly. Institutions and Investors with and without a green mandate are showing interest in the climate bonding market.

Midwestern Greenhouse Gas Reduction Accord

In 2007, governors of the diverse Midwestern states and the premier of Manitoba unified behind a commitment to advance the region toward a lower-carbon energy economy that “maximizes the energy resources and economic advantages of Midwestern states while reducing emissions of atmospheric CO2 and other greenhouse gases.” The Midwestern Greenhouse Gas Reduction Accord (Midwestern Accord) is a regional agreement by six governors of states of Minnesota, Wisconsin, Illinois, Iowa, Michigan, Kansas, and the Canadian Province of Manitoba.

Regional Greenhouse Gas Initiative

The Regional Greenhouse Gas Initiative (RGGI) is the first mandatory market-based program in the United States to reduce greenhouse gas emissions. RGGI is a cooperative effort among the states of Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont to cap and reduce CO2 emissions from the power sector.

Support Carbon Markets

The transition to a low-carbon economy can be supported through multiple approaches, but advocacy and action are critical. Both political support for lower carbon development as well as demonstration projects that highlight multiple benefits of carbon focused resource management can support the growth of carbon markets.

Western Climate Initiative

The Western Climate Initiative (WCI) was formed in 2007 when the governors of Arizona, California, New Mexico, Oregon, and Washington agreed to evaluate and implement ways to reduce their states’s emissions of greenhouse gases and achieve related co-benefits. By July 2008, the initiative had expanded to include two more U.S. states (Montana and Utah) and four Canadian provinces (British Columbia, Manitoba, Ontario and Quebec).