Canada's Federal Greenhouse Gas Offset Credit System Creates Green Incentives For Regulated Facilities

Originally published March 7, 2021

On March 6, 2021, Canada published the Greenhouse Gas Offset Credit System Regulations (the "Regulations"),¹ under section 195 of the Greenhouse Gas Pollution Pricing Act ("GGPPA").²

The GGPPA sets a minimum national standard on greenhouse gas ("GHG") pricing in an attempt to reduce emissions and fulfil Canada's commitments under the 2015 Paris Agreement. For provinces that do not already have a provincially-regulated carbon pricing scheme that meets federal requirements, the GGPPA establishes a regulatory charge on fossil fuels and a carbon pricing system, the Output-Based Pricing System ("OBPS"). For provinces with carbon pricing schemes that meet or exceed federal standards, the regime established under the GGPPA does not apply. Click the link to our recent Bulletin Supreme Court of Canada Upholds Federal Carbon Pricing Regime for a summary of which jurisdictions are currently governed by the GGPPA (as of the date of this