Federal Greenhouse Gas Offset System

The Federal Greenhouse Gas (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 and that go beyond legal requirements.

The Federal GHG Offset System will consist of:

Important notice

 The proposed Greenhouse Gas Offset Credit System Regulations (Canada) are now available for public comment. The 60-day consultation period ends on May 5, 2021. Written comments 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).

The proposed Greenhouse Gas Offset Credit System Regulations (Canada) were published in Canada Gazette, Part I (PDF), on March 6, 2021. The proposed regulations are available for a 60-day comment period.

Environment and Climate Change Canada will continue engagement with interested parties. Publication of final regulations is targeted for fall 2021.

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 Offsets 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 will be developing the following federal offset protocols in the first phase of protocol development:
  • Advanced Refrigeration Systems
  • Improved Forest Management
  • Landfill Methane Management
  • Enhanced Soil Organic Carbon

Timelines for completion of these federal offset protocols will be published soon. Environment and Climate Change Canada will also consider developing protocols for additional project types in the future, as more information or data is available and as their potential evolves.

Consideration for Protocol Development

The federal government published the following discussion paper that provides additional detail on design considerations for the Federal GHG Offset System, with a focus on protocol development. The comment period is now closed.
Carbon Pollution Pricing: Considerations for Protocol Development in the Federal Greenhouse Gas Offset System (July 2020)

Technical Experts 

Roster of Technical Experts

To support federal offset protocol development, Environment and Climate Change Canada is seeking input on a volunteer basis from external technical experts with significant expertise related to offset project development; greenhouse gas validation and verification; sector-based best management practices; offset protocol development; and/or relevant academic research.

Individuals with significant technical and/or scientific expertise who would like to be considered for placement on the Roster of Technical Experts are invited to download and complete the following:

Completed forms and an updated CV should be sent to ec.creditscompensatoires-offsets.ec@canada.ca, with the subject line: “Candidacy Package for Roster of Technical Experts”. Candidate submissions will be accepted on an on-going basis. However, individuals interested in supporting the development of the first four protocols are encouraged to submit their candidacy packages by March 15, 2021.

Technical Expert Teams

Environment and Climate Change Canada will establish Technical Expert Teams made up of individuals from the Roster of Technical Experts to provide technical advice on federal offset protocol development. As specific expertise is required for each project type, the membership of each Technical Expert Team will vary depending on the protocol. Not all individuals on the Roster of Technical Experts will be placed on a Technical Expert Team.

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