Canada seeks comments on proposed carbon offset regulations

The Canadian government on March 5 published draft regulations to establish a Federal Greenhouse Gas Offset System to reduce carbon emissions and create jobs. A public comment period is open through May 5.

The proposed system would support a domestic carbon trading market under Canada’s carbon price for industry—the Output-Based Pricing System—under which facilities that exceed their emission limits can purchase federal offset credits—an additional lower-cost option—generated from activities not already incentivized by carbon pollution pricing.

Under the proposed regulations, federal offset credits could be generated through four federal offset protocols, including landfill methane management, advanced refrigeration systems, improved forest management, and enhanced soil organic carbon. A 30-day public consultation for each protocol is expected to be opened following its future publication.

According to a report filed with the USDA Foreign Agricultural Service’s Global Agricultural Information Network, additional protocols may be considered in the future, including those for aerobic composting, afforestation/reforestation, livestock feed management, avoided conversion of forests, avoided conversion of grasslands, reduced nitrogen oxide emissions from agricultural fertilizer, and livestock manure management.

Additional information is available on the Canadian government’s website.