Valuation of Carbon Capture and Sequestration under Greenhouse Gas Regulations: CCS as an Offsetting Activity

When carbon capture and sequestration is conducted by entities that are not regulated, it could be counted as an offset that is fungible in the market or sold to a voluntary market. This paper addresses the complications that arise in accounting for carbon capture and sequestration as an offset, and methodologies that exist for accounting for CCS in voluntary and compliance markets.