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ARTICLE · 10 AUGUST 2023

Registering And Trading Compliance Carbon Credits On British Columbia's Carbon Registry

Carbon credits are traded on two kinds of markets: compliance markets and voluntary markets. Compliance markets are mandated and regulated through legislation and allow entities to purchase carbon credits...

CanadaEnvironment

What are compliance carbon credits?

Carbon credits are traded on two kinds of markets: compliance markets and voluntary markets. Compliance markets are mandated and regulated through legislation and allow entities to purchase carbon credits with the goal of complying with their emissions reduction obligations. Voluntary markets function outside of a compliance regime and enable companies to voluntarily reduce emissions without an intended compliance purpose.

In British Columbia (BC), compliance carbon credit trading and use is governed by the Greenhouse Gas Industrial Reporting and Control Act (GGIRCA). Under GGIRCA, three regulations have been created:

i. The Greenhouse Gas Emission Reporting Regulation, BC Reg 249/2015 (GGERR);1

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