On June 8, 2022, Canada launched “Canada’s Greenhouse Gas Offset Credit System.” According to a News Release, “The offset system will give municipalities, foresters, farmers, Indigenous communities, and others a market-based incentive to undertake innovative projects that reduce greenhouse gases (GHGs) by preventing emissions and removing GHGs from the atmosphere.”
Canada’s GHG Offset Credit System
Canada’s GHG Offset Credit System consists of the following:
- Regulations to implement the operational aspects of the system;
- Federal offset protocols that establish the approach for quantifying GHG emission reductions for a given project type; and
- A tracking system to register offset projects, issue and track offset credits, and share key information through a public registry.
Regulations: The regulatory framework is found in the Canadian Greenhouse Gas Offset Credit System Regulations: SOR/2022-111.
Federal Offset Protocols: In order to take advantage of the offset program, a project must comply with one of the Federal Offset Protocols. As we understand, the only protocol currently established is for Landfill Methane Recovery and Destruction (see our February 7, 2022 blog).
In addition to the Landfill Methane protocol, the following protocols are under development:
- Reducing Greenhouse Gas Emissions from Refrigeration Systems
- Improved Forest Management
- Enhanced Soil Organic Carbon
- Livestock Feed Management
- Direct Air Carbon Capture and Sequestration
Future protocols under development will be posted at Compendium of Federal Offset Protocols. The Landfill Methane Recovery and Destruction Protocol is listed on this page.
Tracking System: The tracking system is called, Credit and Tracking System (CATS). “The federal Output-Based Pricing System (OBPS) and Canada’s GHG Offset Credit System are market-based approaches designed to incentivize GHG reductions and spur innovation while maintaining competitiveness and protecting.”
As stated in the Backgrounder, “To be eligible to generate offset credits, all projects will be required to achieve real, additional, quantified, verified, unique, and permanent GHG reductions or removals by following a published federal GHG offset protocol.” The program requires third-party verification.
Canada has established GHG offset credit system (Image by Jondolar Schnurr from Pixabay).
Greenhouse Gases
According to Our World in Data (2020 data), China is by far the leading emitter of CO2 from fossil fuels at 10.67 billion tons/year (and rising). The United States is the second largest GHG emitter but its emissions peaked in 2006 at 6.49 billion tons/year. The remainder of the top ten emitters includes India, Russia, Japan, Germany, South Korea, Iran, Canada, and Saudi Arabia.
Canada is responsible for 1.89% of the global CO2 emissions. We are, however, among the top ten emitters per capita.
To learn about other efforts to cut GHGs see the recently released “Options to cap and cut oil and gas sector greenhouse gas emissions to achieve 2030 goals and net-zero by 2050 – discussion document.”
The current goal established by the Canadian Government is to cut emissions across all sectors by 40- 45 percent (from 2005 levels) by 2030.
If you have a question or need assistance with an environmental issue, contact Christopher Paré, P.Geo. at 519-948-7300, Ext. 114.
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