Alaska Gov. Mike Dunleavy speaks to reporters during a news conference at the state Capitol, April 28, 2022, in Juneau, Alaska. Dunleavy outlined proposed legislation Thursday, Jan. 12, 2023, for Alaska to capitalize on carbon markets, seeking to diversify state revenues long heavily reliant on proceeds from oil. (AP Photo/Becky Bohrer, File)

Alaska Gov. Mike Dunleavy speaks to reporters during a news conference at the state Capitol, April 28, 2022, in Juneau, Alaska. Dunleavy outlined proposed legislation Thursday, Jan. 12, 2023, for Alaska to capitalize on carbon markets, seeking to diversify state revenues long heavily reliant on proceeds from oil. (AP Photo/Becky Bohrer, File)

Dunleavy pitches plan to capitalize on carbon markets

The Republican governor and members of his administration outlined the proposal at a news conference in Anchorage.

JUNEAU — Gov. Mike Dunleavy outlined proposed legislation Thursday for Alaska to capitalize on carbon markets, seeking to diversify state revenues long heavily reliant on proceeds from oil.

Dunleavy plans to introduce his so-called a carbon management bill package during the legislative session that begins next week.

The Republican governor and members of his administration outlined the proposal at a news conference in Anchorage. Dunleavy said in a statement that he wants lawmakers to seriously consider it as a “cornerstone of a long-term fiscal solution” that would complement revenue from oil and gas and Alaska’s nest-egg investment fund, the Alaska Permanent Fund. The state has relied heavily on oil revenue and earnings from the permanent fund to help pay for state government.

ADVERTISEMENT
0 seconds of 0 secondsVolume 0%
Press shift question mark to access a list of keyboard shortcuts
00:00
00:00
00:00
 

Dunleavy has suggested a range of rough estimates for what carbon projects might yield. Last month, in raising the carbon concept while releasing his budget plan, he said the “amount of money you can derive from this carbon process, that’s difficult to put a finger on, but I would say this, we haven’t even begun to calculate the sequestration concept in terms of monetization.” He said experts would help with that process.

The Congressional Research Service said in a report on carbon capture and sequestration in October that congressional interest in addressing climate change has increased interest in carbon capture and sequestration. But it added, that “debate continues as to what role, if any, CCS should play in greenhouse gas emissions reductions.”

While some policymakers and other interested parties see carbon capture and sequestration as an option to mitigate carbon dioxide emissions, others worry it “may encourage continued fossil fuel use” or that carbon dioxide could leak from underground reservoirs, the report stated.

Dunleavy’s office said the new legislation would set out rules for potential storage of carbon dioxide in underground geologic formations and for a carbon offsets program.

Dunleavy said he sees a carbon initiative as standing alongside existing industries such as oil and gas, mining and timber.

“This is not a displacer of industry,” he said Thursday. “This is just a brand-new opportunity that will enhance and work hand-in-glove with the industries that we currently have.”

More in News

The Kahtnuht’ana Duhdeldiht Campus on Thursday, Sept. 1, 2022, in Kenai, Alaska. (Jake Dye/Peninula Clarion)
State board approves Tułen Charter School

The Kenaitze Indian Tribe will be able to open their charter school this fall.

Alaska State Troopers logo.
Homer Middle School teacher arrested on charges of sexual assault and burglary

Charles Kent Rininger, 38, was arrested March 12 by Alaska State Troopers.

U.S. Sen. Lisa Murkowski raises her right hand to demonstrate the oath she took while answering a question about her responsibility to defend the U.S. Constitution during her annual address to the Alaska Legislature on March 18, 2025. (Jasz Garrett / Juneau Empire)
Murkowski embraces many of Trump’s goals, but questions his methods

Senator addresses flood concerns, federal firings, Medicaid worries in annual speech to Legislature.

Cemre Akgul of Turkey, center left, and Flokarta Hoxha of Kosovo, center right, stand for a photo with members of their host family, Casady and Patrick Herding, at the Kenai Chamber of Commerce and Visitor’s Center in Kenai, Alaska, on Friday, Nov. 29, 2024. (Photo provided by Patrick Herding)
International students get the Alaska experience

Students to share their experiences visiting the Kenai Peninsula at a fundraiser dinner on Sunday.

Lisa Gabriel, left, watches as beach seine nets are pulled from the waters of Cook Inlet at a test site for the gear near Kenai, Alaska, on Tuesday, July 30, 2024. (Jake Dye/Peninsula Clarion)
Proposal to use beach seines in commercial fishery killed

The board amended the proposal to remove setnets from the east side setnet fishery before the motion failed 3-3.

An aerial photograph shows the area where the new Seward Cruise Ship Terminal will be constructed. (Screenshot/Seward Company image)
Work begins on new Seward cruise ship terminal

Work has begun at the site of the new cruise ship terminal… Continue reading

The Tlingit and Haida Elders Group performs the entrance dance at the 89th annual Tribal Assembly of the Central Council of the Tlingit and Haida Indian Tribes of Alaska on Wednesday, April 17, 2024, at Elizabeth Peratrovich Hall. (Mark Sabbatini / Juneau Empire file photo)
Trump rescinds Biden executive order expanding tribal sovereignty and self-governance

Order giving Natives more access to federal funds cited in awarding of major Southeast Alaska projects.

‘Wáats’asdiyei Joe Yates, Raye Lankford, X̱’unei Lance Twitchell and Rochelle Adams pose with the Children’s and Family Emmy Award award Lankford and Twitchell won for co-writing the an episode of the PBS animated children’s show “Molly of Denali.” (Photo courtesy of ‘Wáats’asdiyei Joe Yates)
‘Molly of Denali’ episode wins best writing honor at 2025 Children’s and Family Emmy Awards

First Emmy win for animated PBS show goes to episode co-writers X̱’unei Lance Twitchell and Raye Lankford.

Protesters gather for a protest against Medicaid cuts at the Alaska State Capitol on Wednesday, March 12, 2025. (Jasz Garrett / Juneau Empire)
Alaskans across the state rally to save Medicaid: their ‘lifeline’

Caregivers raise their voices to protect their jobs and the thousands of lives impacted if Medicaid is cut.

Most Read