| | Alberta is the first province with legislation to reduce Greenhouse Gas (GHG) emissions through the regulation of large emitters (industrial facilities in Alberta that emit more 100, 000 tonnes CO2e/yr). This legislation, Climate Change and Emissions Management Amendment Act (Bill 3) was passed in April and the regulations took effect July 1, 2007. Please click here to view.
Regulated facilities must reduce their emission intensity by 12% annually until the end of 2014, based on an average of the facility’s 2003 to 2005 emissions intensity baseline. There are three methods of reduction listed under the legislation:
- Facility upgrades with the installation of new technology;
- Pay $15/tonne CO2e into a technology fund – to invest in R&D and building technology for the future;
- Purchase Alberta made carbon offset credits.
Agriculture and forestry are the only two industries that can remove carbon from the atmosphere. Therefore the agricultural industry has an opportunity in the emerging offset compliance market, both for environmental and economic benefits.
This regulation ultimately creates a market of carbon trading between emitters and farmers who sequester carbon.
Quantification Protocols will Guide Alberta’s Compliance Carbon Offset Market
Nine of the current fifteen protocol standards at this point are agriculturally related (click each project to view the protocol summary): tillage management, beef (2), pork, biogas, energy efficiency, afforestation, biomass combustion and waste heat recovery. Click here to view the government-approved quantification protocols as well as the project and verification guidance documents. Click to access an overview of the Alberta Offset System.
These protocols will provide quality assurance for the market and standardization of the commodity. Buyers – want certainty that a purchased offset tonne will fit the quality criteria under the regulatory framework. Early action credit (ie. no-till management) of carbon sequestration will be recognized back to 2002. Removals and reductions can only be counted once for compliance purposes (you can’t sell the same tonne more than once). To ensure the value of the credit, verification of projects/credits will be done both on farm and at verifier’s office following government approved protocols.
It is recommended that farmers, considering a sales contract for carbon offset credits, become familiar with the contract and their obligations according to the contract. There are several companies in Alberta that are in the business of aggregating credits for sale to the industrial emitters.
What is a tonne of sequestered carbon worth?
Alberta’s GHG regulation has established a price for a tonne of CO2e at $15 because of the option to pay into a technology fund at $15 or to purchase carbon offset credits, in the compliance-based marketplace. The market price will ultimately be determined through the willingness to pay for offset credits. As operational rules and regulations are established; as efficiencies of operations are developed (such as the verification of offsets) the market infrastructure and price will evolve.
For more information on Alberta’s Carbon Market and Climate Change visit:
Climate Change Central - Carbon Offset Solutions
Alberta Environment – Climate Change
Alberta Agriculture and Food - Climate Change/GHG Effect |
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