Alaska, America's worst state for business, pins hopes on a post-oil boom in carbon offsets

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More than any other state, Alaska is dependent on oil, and state revenue has been hit hard by a massive drop in crude production. Are carbon offsets its future?

In addition to a last-place finish in the Economy category, Alaska ranks 49th in the Infrastructure, Education, and Access to Capital categories. It finished 48th in Cost of Doing Business. This is the seventh time since 2007 that Alaska has finished at the bottom, and the third time in the last five studies.Alaska isn't giving up on crude. Recent approvals such as the controversial Willow Project have led state officials toin the years ahead. But Gov.

Dunleavy was marking the signing of SB 48, legislation that officially puts the state in the carbon business. Under the new law, Alaska will be able to sell so-called "carbon offset credits," capitalizing on the state's vast public forest lands. Companies that emit carbon will be able to buy the credits, effectively paying the state to preserve and protect its forests, thereby canceling out, or offsetting, those emissions.

operates an extensive offset program that the state says is an essential part of its program to reduce greenhouse gas emissions.the legislation in January, he noted that Alaska's Native Corporations have generated $370 million in revenue selling offset credits since 2019.

 

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