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ARTICLE · 15 JUNE 2022

Federal Government Launches Greenhouse Gas Offset Credit System

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The Government of Canada has published the Greenhouse Gas Offset Credit System Regulations, which establish an offset system under the Greenhouse Gas Pollution Pricing Act (GGPPA).

CanadaGovernment, Public Sector

The Government of Canada has published the Greenhouse Gas Offset Credit System Regulations, which establish an offset system under the Greenhouse Gas Pollution Pricing Act (GGPPA). The system allows registered participants to carry out projects based on federal offset protocols to generate tradeable offset credits (each credit representing one tonne in GHG emissions reduced or removed). The government also published its first protocol, for Landfill Methane Recovery and Destruction.

What you need to know

  • Offset credits are one type of compliance units that covered facilities can use to compensate for excess emissions (i.e., above annual emission limits) under the Output-Based Pricing System. These credits can also be used for other purposes, such as meeting corporate net-zero commitments.

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