Registries and Enforcement Systems

Enforcement systems ensure that contractual standards clearly identify ownership of the emission reductions and also define who bears the risk in case of project failure. Carbon offset registries track offset projects and issue offset credits for each unit of emission reduction or removal that is verified and certified. Registries are vital in creating a credible, fungible offset commodity. Registries clarify the ownership of offsets. A serial number is assigned to each verified offset. When an offset is sold, the serial number and “credit” for the reduction is transferred from the account of the seller to an account for the buyer. If the buyer “uses” the credit by claiming it as an offset against their own emissions, the registry retires the serial number so that the credit cannot be resold. In this manner, registries reduce the risk of double counting (that is, to have multiple stakeholders take credit for the same offset.) Registration and Enforcement Systems must include:

  • A registry with publicly available information to uniquely identify offset projects.
  • Serial numbers for each offset credit generated by each project.
  • A system to transparently track ownership of offsets which makes it possible to track each offset to the project from which it originated.
  • A system to easily check on the status of an offset (i.e., whether an offset has been retired).
  • Contractual or legal standards that clearly identify the original “owner” of emission reductions.
  • Contractual or legal standards that spell out who bears the risk in case of project failure or partial project failure (e.g. who is responsible for replacing the offsets that should have been produced by the failed project). (Broekhoff, 2007)

Obtaining offsets directly through a registry simplifies the delivery process significantly, as buyers simply establish an account into which the registry transfers the purchased offsets. In so doing, the buyer is assured of both the quality of the purchased offsets (as only offsets that meet the registry’s standards are transacted) and their ownership of the offsets, since they are deposited directly into the purchaser’s account.

Under CDM, the certification process is the phase of a CDM or JI project during which permits are issued on the basis of calculated emissions reductions and verification. In the VER market, credits are not certified but solely verified -- thus the difference between CERs (Certified ERs) and VERs (Verified ERs.) The CDM registry is used to issue CERs from registered CDM project activities into the Pending Account. Up to date information on all registered projects can be found at: http://cdm.unfccc.int/Issuance/cers_iss.html.

Voluntary Market Registries

There are several registries in the voluntary market. They have been developed by governments, non-profits, and the private sector. Some voluntary standard registries are still in the planning stage and not yet operational. The following voluntary registries are currently operating or expected to start operating in 2009:

- American Carbon Registry (ACR)

- Chicago Climate Exchange Registry

- APX Inc. administers the following offset registries:

The Gold Standard Registry
Climate Action Reserve
The Voluntary Carbon Standard (VCS) Registry

- Caisse des Depots (Voluntary Carbon Standard)

- TZ1 administers the following offset registries:

TZ1 VCS Registry
CCB Standards Registry
Social Carbon Registry

For information additional about registries for voluntary programs and standards, please go to the appropriate section of each program description page. Table 5 lists registry information for each of the evaluated programs.

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