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HELP WANTED 39 Other complementary policies, such as the Renewable Portfolio Standard (RPS) and the Low Carbon Fuel Standard (LCFS), have been the primary drivers of renewable energy deployments in the state. These complemen- tary regulations actually create quite high carbon prices (explicit or implied) for specific technologies. For example, the California RPS costs $133 per ton of CO2-eq avoided and the LCFS has seen prices rise above $100 per ton CO2-eq avoided.33 The policies needed to spur learning and innovation for carbon removal solutions are relatively on par with the price of the anal- ogous policies designed for other mitigation approaches. Yet, there are no policies that explicitly mandate the deployment of carbon removal solutions today. Such policies for car- bon removal solutions could drive consider- able early deployments of these technologies, even in the absence of explicit CO2 emissions standards or pricing, in turn bringing costs down and improving the viability of these solutions. Figure 13. Carbon Prices Too Low To Support Carbon Removal 30 20 10 Carbon prices only covered 12% of global emissions by the end of 2014 and most prices are too low to enourage the 34 development of carbon removal solutions. CARBON REMOVAL AT WORK IN REGULATORY CARBON MARKETS: Industries that could deploy carbon removal solutions often fall outside the economic sectors included in the scope of early carbon markets. However, some carbon removal solutions can qualify as offsets for businesses that are covered by carbon regulations. For example, California’s cap-and-trade system allows the use of reforestation and urban forestry offsets for compliance. These offsets follow strict requirements to verify their true carbon benefit for 100 years after the offset is used. See the California Air Resources Board’s Compliance Offset Protocol for U.S. Forest Projects for more information.35 $/ton CO2 RGGI EU ETS Bejing Pilot ETS California Cap & Trade BC Carbon TaxPDF Image | Philanthropy Final Report
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