Canada Proposes Regulations For Greenhouse Gas Offset System

The Government of Canada has released its proposed  Greenhouse Gas Offset Credit System Regulations (Regulations) for public comments until May 5. The Regulations are intended to establish a offset system under the federal Greenhouse Gas Pollution Pricing Act  (GGPPA), enabling the Minister of the Environment to issue offset credits for voluntary greenhouse gas (GHG) reductions achieved by eligible projects. Offset credits are among the types of compliance units that regulated facilities can use to cover any GHG emissions exceeding their emissions limits under the GGPPA's Output-based Pricing System (OBPS).

What you need to know

• The Regulations—building on the federal government's recent discussion papers¹—would establish the criteria for creating offset credits under the GGPPA as a means to incentivize voluntary GHG reductions. According to these criteria, eligible projects must demonstrate their GHG reductions are real, additional, quantified, verified, unique