The Western Climate Initiative Partners have expressed an interest in effective market oversight to ensure an efficient and transparent carbon market. The WCI’s Markets Committee issued a Market Oversight White Paper in November, 2009, and Draft Recommendations April 1, 2010. 

The Draft Recommendations document identified twelve market oversight policy decisions. One of the identified decisions was whether or not to implement “holdings limits,” limits on the number of allowances or offset certificates any entity could control. WCI Partners commissioned a consultant’s report on this issue, to review the history, theory, and use of similar limits in other markets, as well as recommendations on their use in a regional cap-and-trade program. The Partners contracted with Dr. Jeffrey H. Harris of the University of Delaware to provide the report and recommendations.

The WCI Partners intend to release final recommendations, including a recommendation on holdings limits, by June 30, 2010. To facilitate its deliberations, the Committee invites comment on this commissioned report by June 4, 2010.