Alaska Governor Mike Dunleavy introduced two bills on Friday that would allow the state to raise revenue by starting carbon offset and sequestration programs. The bills would create a regulatory framework for geologic storage of carbon dioxide and a framework for allowing carbon offsets using state land and then selling carbon offset credits. Companies that might participate may want to voluntarily offset their emissions, or they might be required to do so under regulated markets such as those in California or Europe. According to experts, the state of Alaska can generate billions of dollars per year by creating a carbon management system. There is some precedent for a carbon offset program of Alaska’s forests, with several Alaska Native corporations already engaged in a California cap-and-trade program, netting one — Sealaska Corp. — a reported $100 million between 2015 and 2020. The governor’s legislation says that state forests used for a carbon offset program “must remain open to the public” for hunting, fishing and other recreation opportunities. The state could potentially bring in millions each year from their forests alone, however, how much the state could bring in, and how early, is a huge unknown. The Legislature is planning to hire an independent consultant to carefully review the governor’s legislation, meaning it could be months or even years before the legislation passes. The Legislature wants to perform its own due diligence on the governor’s ideas before it jumps on board to see if the numbers pencil out. Alaska has a tremendous opportunity to capitalize on the rapidly growing market for carbon offset programs and the state could potentially make tens of millions of dollars annually, or perhaps much, much more.
The restructuring capability of blockchain and the concept of carbon credits.
Blockchain technology is being used to create a more transparent and efficient carbon credits market. The global carbon credit market...