Just in time for the creation of California’s regulatory cap-and-trade market, TerraPass and Bank of America Merrill Lynch announced a partnership last week which marks an important milestone for TerraPass.
Under our partnership, TerraPass will source and deliver verified farm-based carbon offsets over the next 9 years which Bank of America Merrill Lynch has the option to purchase. Unlike offset purchases we’ve discussed in the past (like this one and this one (.pdf), this sale is not part of a voluntary emission reduction strategy by a major corporation. Rather, it is quite specifically aimed at getting carbon offsets into the hands of regulated emitters under California’s upcoming cap-and-trade system.
We are as proud of our ability to provide offsets to regulated emitters, as we are of our ability to provide offsets to individuals and companies working to address their emissions in a voluntary fashion.
We really are.
This is because we believe that mandatory greenhouse gas emission controls are absolutely required to bring emissions down to a level which will at least allow the earth’s population to adapt to its changing conditions. And we believe that mandatory greenhouse gas emission controls are best implemented, and most politically palatable, when they allow money to flow to the least expensive options first.
And that’s the business we are in. Helping to implement near-term greenhouse gas reduction projects which are as cost-effective as possible. We are not in the business of compliance emissions trading.
Emissions trading is a serious business, as it should be. It is highly regulated (moreso now than ever) and requires substantial financial sophistication, not to mention substantial financial reserves. Bank of America Merrill Lynch has been in this business elsewhere in the world for many years, and provides a fantastic yin to our yang. Or yang to our yin.
Either way, we are very excited about this partnership. It marks what we hope to be a dramatic increase in the demand for carbon offsets. That means there will be more money available for emission reduction projects. That’s the future we hope to bring about, and this agreement marks a great big step in the right direction.