Based on our analysis of the Alberta Specified Gas Emitters market, the offset market is expected to grow in 2010 and 2011 despite the setback to the federal carbon programs in the US and Canada. In 2009, Offset Credits accounted for 36% of the compliance market, second only to 40% for Tech Fund payments made in lieu of compliance. 2010 will see a continuation of the trend from 2007 through 2009 of an increasing use of offset credits. The offset market, though dominated by the agricultural sector, has increasing volumes of wind and biomass projects registered in 2010. Offset volume should surpass the 2009 total of 3.8 mtCO2e with prices expected in the range of $12 to $14.50.