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ARTICLE · 11 FEBRUARY 2025

Canada Publishes Draft Offset Protocol For Direct Air Carbon Dioxide Capture And Geological Storage

Blake, Cassels & Graydon LLP
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In January 2025, Environment and Climate Change Canada (ECCC) released a preliminary draft of its Federal Offset Protocol (Protocol) for direct air carbon dioxide capture and geological storage (DACCS) projects.

CanadaEnergy and Natural Resources
Mathieu Nolin
Mathieu Nolin
Dufferin Harper
Dufferin Harper
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In January 2025, Environment and Climate Change Canada (ECCC) released a preliminary draft of its Federal Offset Protocol (Protocol) for direct air carbon dioxide capture and geological storage (DACCS) projects. The Protocol is intended for projects capturing carbon dioxide (CO2) directly from the atmosphere and storing it in subsurface geological formations.

DACCS projects in compliance with the Protocol will benefit from federal offset credits issued under the Canadian Greenhouse Gas Offset System Regulations(Regulations), allowing them to monetize greenhouse gas (GHG) reductions under the federal Output-Based Pricing System.

The deadline for comments on the draft Protocol is March 28, 2025.

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