Carbon pollution pricing: options for a Federal Greenhouse Gas Offset System, chapter 11

Federal Offset Protocol development

Offset protocols set out a consistent and approved approach for quantifying greenhouse gas (GHG) reductions or removal enhancements for a given project type. A protocol also provides requirements for project planning and operating expectations, including monitoring and data management requirements. These requirements must be followed by a Project Proponent when implementing and reporting on an offset project and must be confirmed by an accredited Verification Body during the verification.

Only project activities for which Environment and Climate Change Canada has approved a Federal Offset Protocol may be eligible to generate Offset Credits.

To minimize costs and accelerate Federal Offset Protocol development, Environment and Climate Change Canada will evaluate the potential to adapt offset protocols from existing provincial and territorial offset systems and adapt these for use across Canada. The Protocol adaptation approach will follow international best practices and ISO 14080:2018 Greenhouse Gas management and related activities – Framework and principles for methodologies on climate actions, as appropriate.

Technical Advisory Teams may be created on an ad-hoc basis to help develop Federal Offset Protocols. The focus and composition of the Technical Advisory Teams will vary for different project types. Environment and Climate Change Canada will oversee and facilitate the ad-hoc Technical Advisory Team activities and will engage experts as appropriate.

When developing new Federal Offset Protocols, Environment and Climate Change Canada will follow a transparent process. Stakeholders will have opportunities to provide feedback during the protocol development process. Regular updates to Federal Offset Protocols will also be required as baseline conditions, technology, or other elements of an offset project type evolve. Environment and Climate Change Canada may consider establishing minimum revision time periods and associated processes for updating Federal Offset Protocols.

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