Designing a Greenhouse Gas Offset System for Canada
The Government of Canada is currently undertaking work on the design of a Canadian offset system for greenhouse gases (GHGs) as envisioned in the 2005 climate change plan for Canada – Moving Forward on Climate Change: A Plan for Honouring our Kyoto Commitment. On August 11, 2005 the Offset System for Greenhouse Gases Overview Paper and Technical Background Document were released for public consultation.
About Offsets
The offset system will provide domestic offset credits for project-based GHG reductions or removals that meet the requirements of the system. Emission reductions in the offset system could come from projects that reduce emissions at a source – the combustion of landfill gas, for example. Emission removals result from projects that enhance carbon sinks in the agriculture and forest sectors. The ability to sell domestic offset credits will provide an incentive for Canadians to innovate and invest in activities that will help mitigate climate change.
Large Final Emitters (LFEs) could purchase and use domestic offset credits as one way of meeting their emission reduction targets. The Climate Fund, established in Budget 2005, will purchase domestic offset credits on behalf of the Government of Canada and retire them to benefit the environment. In addition, participation in the system will be open to public interest groups and others who wish to purchase and then retire offset credits.
What's New?
The Government distributed a Discussion Paper in June 2003 that outlined the key design elements of an offset system and provided the basis for cross-country consultations.
On August 11, 2005 the Offset System for Greenhouse Gases Overview Paper and Technical Background Document were released for public consultation. Written submissions are welcome until September 30, 2005 and should be submitted to:
Judith Hull
Project Manager, Offsets
Environment Canada
Suite 200, 155 Queen Street
Ottawa, Ontario K1A 0H3
email: offsets-compensations @ ec.gc.ca
A federal-provincial/territorial team – the National Offset Quantification Team, was established in September 2004 to begin the preparation of quantification protocols for project types of key interest to Canadians. These protocols will be considered by the offset system program manager once the rules of the system are finalized and the infrastructure for implementing the program is in place. Additional work to develop protocols is occurring in the private sector and through other government activities.
Meanwhile, informal consultations with provinces, territories and stakeholders on the design of the offset system are ongoing.
Formal Consultations
Formal consultations on the Offset System for Greenhouse Gases Overview Paper and Technical Background Document will be held during September 2005.
Provide Input
Input from Canadians to the design of a GHG offset system for Canada is welcome.
E-mail your input to: offsets-compensations @ ec.gc.ca
Written input may be mailed to:
Judith Hull
Project Manager, Offsets
Environment Canada
Suite 200, 155 Queen Street
Ottawa, Ontario K1A 0H3
What is the large final emitters system?
Canada's large final emitters, or LFEs – electricity generation, the oil and gas sector, and mining and manufacturing – will be required to meet emission intensity targets.
It is proposed that a number of tools will be put in place to allow LFEs to meet their emissions intensity targets in a way that is the most cost-effective and practical for their enterprise. As an alternative to reducing their own emissions, LFEs will be able to purchase reductions from other LFEs that have exceeded their target, invest in technology developments, buy domestic offset credits or eligible international Kyoto units.