Canada's Greenhouse Gas Offset Credit System

In May 2022 the Federal government passed regulations to generate Federal offset credits called Canada's Greenhouse Gas (GHG) Offset Credit System pursuant to the Federal Greenhouse Gas Pollution Pricing Act (the "GGPPA") and Federal Environmental Violations Administrative Monetary Penalties Act. The Canadian Greenhouse Gas Offset Credit System Regulations (the "GHG Offset Regulations") established under Part 2 of the GGPPA, were published in the Canada Gazette, Part II on June 8th, 2022. The GHG Offset Regulations apply across Canada. The complete GHG Offset Regulations can be found here (https://www.laws-lois.justice.gc.ca/eng/regulations/SOR-2022-111/index.html).

The GHG Offset Regulations enable creation of offset credits if the project registers and implements reduction of GHG using a published federal GHG offset protocol. These offset credits can be sold and used by entities either by compliance under the Federal Output Based Pricing System ("OBPS") or by