National Carbon Offset Trading Project

1. National Carbon Offset Trading Project Jo-Ann Choate Carbon Trading Project Director www.nascsp.org

2. Overview • New initiative to implement a National Carbon Trading Project. • NASCSP is developing a national framework to measure carbon emission reductions from weatherization activities and sell carbon offsets in the voluntary carbon markets in compliance with the Verified Carbon Standard (VCS). • Purposes: • Leverage additional funding for WAP • Assist States to improve quality of services • Expand the WAP network’s expertise beyond the low income community www.nascsp.org

3. What is Carbon? • The burning of fossil fuels leads to carbon emissions, green house gases that absorb and emit radiation in the atmosphere. • Carbon emissions come in many forms, including the pollution from single and multi-family dwelling releasing CO2in the atmosphere. • 40% of energy used in the US goes to power commercial and residential buildings. • Half of that (20% of total) is for space heating and cooling. www.nascsp.org

4. Benefits of Weatherization • Reduces pollution in the atmosphere • Reduces dependence on fossil fuels • Reduces the cost of energy bills • Creates an opportunity to expand weatherization funds by selling carbon offsets. • Creates and sustains quality jobs. www.nascsp.org

5. What is an Offset? • It is a way for a polluter to satisfy carbon emissions reduction obligations without reducing carbon emissions. • It is a way for a buyer (such as Chevy, universities, etc.) to help reduce their carbon emissions . • It is a way for a buyer to support a carbon emissions reduction projects for social purposes, etc. www.nascsp.org

6. The Global Carbon Market • Total Value in 2008: $126 billion. • The Compliance Market was $120 billion in 2008 – Kyoto Protocol including the Clean Development Mechanism (CDM) EU Emissions Trading Scheme. • The Voluntary Market was $705 million in 2008 and projected to be $850 million in 2009. • If the US implements a cap-and-trade system, the voluntary market could reach $300 billion annually. www.nascsp.org

7. How Do States Start? • States can choose to work with NASCSP. • NASCSP will help states establish a process and streamline the cost of implementing a carbon project by: • Assisting states in establishing standards to identify carbon. • Assisting States in ensuring data quality and monitoring. • Ensuring savings from activities are proven. • Assisting states with development of a Project Description. • Working with states to keep cost low (Note: there will be cost for each state to participate but at a very minimum amount to implement the project and maintain the data). www.nascsp.org

8. NASCSP Role • Identify Scope and Plan for Project • Identify and Manage Carbon Data • Write Project Description • Validate Project Description • Verify Offsets • Register and Sell Offsets • Provide Carbon funds back to each State. www.nascsp.org

9. Current Activities • To date, 17 states have signed up to participate in the program. • NASCSP staff has begun the process of setting up systems to review documents and questionnaires provided from each state. • Developing the first Project Description (PD). • Developing training webinars for participating states . www.nascsp.org

10. Questions? • Jo-Ann L. Choate • Carbon Trading Project Director • jchoate@nascsp.org • Phone: 202.624-7859 • Cell: 207-620-0209 • Eric Stam • Carbon Trading Research Analyst • estam@nascsp.org • Phone 202.624-8828 www.nascsp.org