Regulated Markets

ClimeCo actively participates in regulated markets across North America, from cap-and-trade to hybrid market designs. Throughout these variable and complex programs, our mission remains the same: to help clients minimize their compliance obligations and capitalize on unique market opportunities where available. ClimeCo is an expert in the following programs:

    • Alberta’s Technology Innovation and Emission Reduction (TIER) regulation
    • Carbon pricing jurisdictions across Canada, such as the Federal OBPS, Manitoba and Saskatchewan
    • The Western Climate Initiative (WCI) joint cap-and-trade program in California and Quebec
    • The Regional Greenhouse Gas Initiative (RGGI)

Over the past decade, we have seen rapid change in the number and complexity of regulatory market-based environmental programs in North America. Our team provides a unique combination of policy and industry expertise, financial experience and scientific training to help clients operating under these policies achieve optimal outcomes, We take a long-term view and advocate for effective yet viable environmental policies.

– Derek SixChief Business Officer

Transaction Services

ClimeCo’s core strengths in sourcing environmental commodities and assisting clients with transactions stem from our comprehensive market knowledge (including both existing and proposed regulatory frameworks), our in-depth relationships with market participants, and our extensive contracting expertise. We do much more than simply connect a buyer and seller; we work with both parties throughout the entire process to ensure a win-win solution.

Focus Areas

WCI

ClimeCo has streamlined the WCI process by offering a short, simple contract; by providing easy delivery of offsets to clients’ CITSS accounts; and by guaranteeing delivery and validity of the offset products. WCI offers a unique opportunity for companies to capitalize on credit transactions. California’s carbon cap-and-trade program permits regulated emitters to surrender lower-cost carbon offsets instead of allowances for up to 8% of their total surrender obligation in each compliance period (this decreases to 4% beginning in 2021). This allows emitters to leverage a greater number of offset credits, receive a payment to help reduce overall compliance costs, or both.

Project Development

ClimeCo develops and manages projects across North America to produce offsets for various compliance programs, including the WCI and TIER programs.

  • Livestock manure methane capture and destruction
  • Ozone-depleting substance (ODS) destruction
  • N2O abatement at nitric acid production plants (TIER) in Alberta

Our rigorous process for each project includes the following:

  • Identifying and qualifying eligible project opportunities
  • Managing any or all steps (as needed) from contracting through construction, using a network of established project partners
  • Monetizing the environmental credits generated by the project

Our livestock and ODS projects generate approximately 500,000 tonnes per year. In addition, the two N2O abatement projects we support in Alberta, Canada, generate approximately 550,000 offsets per year for use in Alberta’s TIER program.


PROJECT STORY
T&M Dairies, Fair Oaks, Indiana

ClimeCo partnered with T&M Dairies, a group of four dairies in Indiana that manages more than 20,000 animals. Manure from the animals was stored in open-air lagoons that allowed the release of methane into the atmosphere. ClimeCo arranged for the installation of anaerobic digesters at each farm to process the manure and capture the generated methane for use in electricity production. We have been monitoring, registering, and monetizing the carbon credits created from the reduction of methane emissions for over a decade. To date, the project has generated more than 590,000 offset credits, with average annual emission reductions of approximately 60,000 metric tonnes of CO2e.

Policy & Advisory

ClimeCo actively participates in regulated markets across North America, from cap-and-trade to hybrid market designs. Throughout these variable and complex programs, our mission remains the same: to help clients minimize their compliance obligations and capitalize on unique market opportunities where available. ClimeCo is an expert in the following programs:

  • Alberta’s Technology Innovation and Emissions Reduction Regulation (TIER)
  • Carbon pricing jurisdictions across Canada, such as the Federal OBPS, Manitoba and Saskatchewan
  • The Western Climate Initiative (WCI) joint cap-and-trade program in California and Quebec


Focus Areas

TIER and Canadian Hybrid Market Programs  


ClimeCo offers a comprehensive suite of services to help optimize program participation for regulated entities:

  • Government engagement and negotiation strategy
  • Market fundamentals and regulatory overviews
  • Evaluation of commercial contracting and trading parameters
  • Identification of beneficial transaction opportunities
  • Development of competitive market participation processes
  • Negotiation and review of contracts
  • Closing and delivery transactional support

WCI

CimeCo has been active in the WCI markets since the inception of California’s cap-and-trade program in 2013. Our team assists clients with a wide variety of services, such as:

  • Auction participation support
  • Program reports, analysis, advocacy, and forecasting
  • Compliance planning and operations review
  • Allowance and offset procurement optimization
  • Agency negotiations
  • COabatement strategies
  • Assessing the impact of GHG-reduction strategies on other local, regional and state air regulatory requirements

Through decades of permitting experience, ClimeCo has amassed in-depth expertise in industrial processes. This knowledge helps us successfully assist clients with benchmark negotiations and COabatement strategies. In-house experts in air permitting, air dispersion modeling, project finance, and entity GHG quantification augment our advisory capabilities.

Related Programs


In addition to the WCI and TIER, ClimeCo provides trading and advisory services for related programs, such as the Low Carbon Fuel Standard (LCFS), the California Environmental Quality Act (CEQA) and the EPA Cross-State Air Pollution Rule (CSAPR), as well as with the California Air Quality District permitting process. Clients benefit from our overarching understanding of all the programs that may affect them and how these programs relate to each other.

ClimeCo provides timely insight on environmental markets. Their breadth of clients and knowledge of unique and emerging markets is an asset to our company.


Braydon Boulanger
Manager, Environmental Products Trading, TransAlta