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The Treatment of Biomass Fuels in Carbon Emissions Trading Systems

March 1998 | David Kline, Tim Hargrave, Christine Vanderlan

Part of the Airlie Carbon Trading Papers, this report presents an approach for including biomass fuels in a carbon emissions trading program. Under this method, plantations that produce carbon-neutral biomass would be certified as having done so. An upstream trading system (where mission allowances are required of fuel producers) would mean that the plantations would not be required to hold allowances for the certified biomass they sell, while in a downstream system (in which emission allowances are required of fuel users), purchasers of certified biomass would not need to surrender allowances for biomass-related emissions. In either case, under a GHG emissions trading system biomass fuel would gain a price advantage over fossil fuels, which would require allowances due to their carbon emissions.

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