• Who We Are
    • The Climate Trust
    • Climate Trust Capital
    • Achievements
    • Leadership And Board Of Directors
  • What We Do
    • Action
    • Impact
    • Case Studies
  • Financials
  • Media
    • Blog
    • News & Press
The Climate Trust | Canada Advances Federal Offset Program

Canada Advances Federal Offset Program

Climate Finance, Policy

Canadian Government Advances Federal Offset Program

On March 5, 2021 the Canadian government released the framework for its Federal Offset System which aims to reduce greenhouse gas emissions (GHG) for regulated industries and encourages voluntary project activities that generate carbon offset credits. Like California’s cap and trade program, the Canadian system (called the Output-Based Pricing System) uses offsets as a way for companies to reduce their overall cost of compliance.  Under the Output-Based Pricing System (OBPS) if a facility exceeds their emissions limits, they must either pay an excess emissions charge or submit credits. Those credits can be surplus credits purchased or accrued, or offset credits issued by a Canadian province or the federal system.

Like California’s successful cap and trade program offset credits must represent additional GHG reductions or removals from a business-as-usual scenario and cannot be required by law.  The OBPS intends to administer a self-insurance mechanism called the Environmental Integrity Account.  Offset projects would contribute at least 3% of their offsets to this account to protect against a project underperforming due to unintentional reversals (e.g., natural disasters).  Forestry and other biological projects may see higher buffer pool rates as the final rules are worked through.

The proposed Canadian program will manage the OBPS registry in-house and will require offset projects be located in Canada, and the owner of those projects must be a Canadian citizen or business entity. Four project types are being prioritized: improved forest management, landfill methane management, advanced refrigeration systems and soil carbon enhancement.

The Canadian offset program has been in the works for over two years.  Although covid-19 slowed the development process down somewhat, it is exciting to see that North America will have yet another large scale GHG emissions reduction program in place by the end of 2021.

 

News + Resources

Canadian Federal Offset Program
Tags
Adaptation
Aggregation
American Carbon Registry
Biochar
Blue Carbon
C-AGG
California Air Resources Board
California Carbon Info
Cap and Invest
carbon offset standards
Carbon Pricing
Carbon-Pulse
Clean Power Plan
Climate Action Reserve
Climate Bonds
Conservation Finance Network
Corporate Social Responsibility
CORSIA
Culture
Dairy Digester
Ecosystem Marketplace
Edible Portland
Energy Central
Environmental Defense Fund
Environmental Justice
EPAF
Farm Power Northwest
GreenBiz
IPCC
Job Announcement
Leadership
Low Carbon Fuel Standard
Milestone
Oregon Carbon Dioxide Standard
Oregon Clean Fuels Program
Oregon Energy Facility Siting Council
Oregon Global Warming Commission
Pacific Coast Action Plan on Climate and Energy
Paris
Portland General Electric
REDD
Renewable Fuel Standard
Renewable Identification Numbers
Request For Proposal
RGGI
Rice
Risk Management
Scientific American
Social Cost of Carbon
Supply Chain
Sustainable Business Oregon
Triple Pundit
USDA Natural Resources Conservation Service
Verified Carbon Standard
Western Climate Initiative
Recent Comments
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT
Proud Member Partners in Diversity
  • DONATE
  • CAREERS
  • CONTACT

©2020 The Climate Trust. Crafted by ILLUSIO