They’re putting their money where their mouth is.
On June 8, the federal government announced the creation of Canada’s Greenhouse Gas Offset Credit System, a measure intended to incentivize projects that will reduce emissions. As part of the country’s 2030 Emissions Reduction Plan, it will give municipalities, foresters, farmers, Indigenous communities, and others a market-based incentive to pursue innovative projects aimed at curbing pollution.
“The residents of British Columbia have long been champions in the fight against climate change and understand the critical need to reduce our emissions and protect our environment,” said Squamish MP Patrick Weiler, in a news release.
“Canada’s Greenhouse Gas Offset Credit System is an exciting opportunity for Canadian businesses and municipalities to do just that—take responsible climate action, while also earning revenue through our country’s carbon market.”
Under the new system, registered participants can carry out projects following a federal offset protocol, which sets out a consistent approach for measuring GHG emissions reductions or removals for specific types of projects. These projects can generate one tradeable offset credit for every tonne of emissions they reduce or remove from the atmosphere. Once a credit is earned, it can be sold to others to help them meet their compliance obligations or emissions reduction goals under the carbon pollution pricing system.
Also launched on June 8, the Landfill Methane Recovery and Destruction protocol will allow municipalities and other landfill operators will be able to generate offset credits for recovering landfill gas from their operations and destroying it or repurposing it into energy with technologies such as flares, boilers, turbines, and engines. Reducing the pollution from waste (responsible for 7 percent of Canada’s greenhouse gases) is a key component of achieving Canada’s emissions reduction targets.
Four additional offset protocols are currently in development for activities such as advanced refrigeration, agriculture, and forest management. Environment and Climate Change Canada has also identified the next round of protocols for development, which will include a protocol for Direct Air Carbon Capture and Sequestration, technologies that directly remove carbon dioxide from the atmosphere and permanently store it underground.
According to the government’s release, Canada’s Greenhouse Gas Offset Credit System is aligned with the Pan-Canadian Greenhouse Gas Offsets Framework and incorporates expertise from across the country. Provinces including Alberta, British Columbia and Quebec have already demonstrated leadership in this area by launching provincial offset credit programs, and by sharing their experiences to help support the design of the federal system. The availability of offset credits is expected to help stimulate innovation and private sector investment in economic activities to reduce emissions, thus keeping Canada competitive in a decarbonizing economy.
For more information on Canada’s Greenhouse Gas Offset Credit System, eligible activities, and how to submit an application to register an offset project, please visit Canada.ca.
