Carbon pollution pricing: options for a Federal Greenhouse Gas Offset System, chapter 5

Over the course of 2016 to 2018, federal, provincial and territorial governments collaborated through the Canadian Council of Ministers of the Environment (CCME) to develop the Pan-Canadian Greenhouse Gas Offsets Framework (Offsets Framework). The Offsets Framework provides guidance to jurisdictions that are developing or operating offsets programs so that over the longer-term, jurisdictions can develop a consistent suite of requirements that could be mutually recognized for transferability and fungibility of offset credits across Canada. The Offsets Framework provides guidance to advance the consistency of offset program requirements to support alignment of offset programs, reduce the administrative burden and risk associated with the offset creation process, and improve fungibility of offset credits.

Under the Offsets Framework, federal, provincial, and territorial government authorities committed to collaborate and coordinate efforts for effective and efficient offset programming across Canada. In particular, processes and practices that support the alignment of the Federal Greenhouse Gas (GHG) Offset System with other programs across Canada should be considered in order to increase fungibility while also reducing the administrative burden and risk associated with the offset creation process. Environment and Climate Change Canada will align with the Offsets Framework in the design and development of its proposed Federal GHG Offset System.