Federal Greenhouse Gas Offset System

The Federal Greenhouse (GHG) Offset System is under development, to encourage cost-effective domestic GHG emissions reductions and removals from activities that are not covered by carbon pollution pricing or that go beyond legal requirements.

The Federal GHG Offset System will consist of:

Important notice

Carbon Pollution Pricing: Considerations for Protocol Development in the Federal Greenhouse Gas Offset System is now available.

The paper provides additional detail and design considerations for the Federal GHG Offset System, with a focus on protocol development. Environment and Climate Change Canada welcomes comments on all elements outlined in this paper until September 4, 2020. Written comment can be sent to ec.creditscompensatoires-offsets.ec@canada.ca.

Overview

Legislation and Regulations

The Federal GHG Offset System is being developed under Part 2 of the Greenhouse Gas Pollution Pricing Act (GGPPA).

Publication of proposed regulations for the Federal GHG Offset System in the Canada Gazette, Part I is targeted for fall 2020.

Key Offset System Design Considerations

The federal government published the following paper to inform the design of the Federal Greenhouse Gas Offset System. The comment period is now closed.

Carbon Pollution Pricing: Options for a Federal Greenhouse Gas Offset System (June 2019)

Pan Canadian Greenhouse Gas Offset Framework

The design of the Federal GHG Offset System will align with the Pan-Canadian GHG Offsets Framework (PDF) agreed by the Canadian Council of Ministers of the Environment in November 2018.

Protocol Development

Federal offset protocols will set out a consistent approach for quantifying GHG emissions reductions for a given project type, including clear rules for establishing baselines for approved offset project activities. Only project activities with an approved federal offset protocol will be able to generate credits in the Federal GHG Offset System.

Protocol Development Schedule and Status

Environment and Climate Change Canada is planning a phased approach to federal offset protocol development. Environment and Climate Change Canada will post the protocol development schedule once the list of protocols to be developed in the first phase of protocol development has been finalized.

Engagement of Technical Experts in Offset Protocol Development

Environment and Climate Change Canada will be establishing a Roster of Experts to support the protocol development process. More information on how to apply will be posted soon.

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