Resilient LLP (formerly DeMarco Allan LLP)
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DT Vollmer

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USDA Announces Intent to Establish GHG Technical Assistance Provider and Third-Party Verifier Program Advisory Council

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The U.S. Department of Agriculture (USDA) yesterday announced that it intends to establish an Advisory Council (the Council) for the Greenhouse Gas (GHG) Technical Assistance Provider and Third-Party Verifier Program (the Program). The Council is authorized by the Growing Climate Solutions Act which directs the Secretary of Agriculture (the Secretary) to establish the Council to facilitate participation in voluntary environmental credit markets. The USDA is now seeking nominations for Council membership. This bulletin briefly summarizes key information related to the Council and sets out important dates. Purpose. The Council will support the USDA and the Program to facilitate the participation of farmers, ranchers, and private forest landowners, including beginning, socially disadvantaged, limited resource, and veteran farmers, in voluntary environmental credit markets. The Council will also support the Biden-Harris Administration’s Principles for Responsible Participation in Voluntary Carbon Markets (the Principles) (see our earlier bulletin here). Council activities: The Council will submit an initial assessment to Congress about the Program and will consult with the Secretary regarding subsequent periodic assessments. Key activities of the Council include: Periodically reviewing and recommending changes to: the list of protocols recognized for generating environmental credits; required qualifications for entities providing technical assistance; and activities for which technical assistance providers and third-party verifiers may register to provide services under the Program that prevent, reduce, or mitigate GHGs. Advising the Secretary on: current methods for quantifying and verifying greenhouse gas emissions prevention, reduction, or mitigation in voluntary environmental credit markets; ways to reduce barriers to entry and transaction costs in these markets; and strengthening markets to align with the Principles. Council membership details. Members will serve two-year terms, with the initial slate serving staggered terms of one to three years, and may serve up to four additional two-year terms. The Secretary will appoint members to the Council as follows:…

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Canada’s Competition Bureau Releases Digest on Greenwashing Provisions

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Canada’s Competition Bureau (the Bureau) today released a new edition of the Deceptive Marketing Practices Digest (the Digest) that addresses environmental claims. The new edition aims to provide the Bureau’s general perspective on environmental claims and offers a foundation to understand the issues around environmental claims in general and how businesses can comply with the provisions of the Competition Act already in place prior to the new greenwashing provisions of the Competition Act, which were implemented on June 20, 2024 (see our earlier bulletin here). The Bureau also launched a public consultation to gather input from Canadians on specific questions related to the new amendments in advance of new guidance. Feedback is due by September 27, 2024. This bulletin briefly summarizes the key points arising out of the Digest: Environmental claims. The Bureau’s perspective is that an environmental claim is any representation related to the environment that has been made for the purposes of promoting a product or business interest. Environmental claims can be about physical products as well as services, processes, and business practices. Greenwashing. Greenwashing means, in the context of the Bureau’s work, environmental claims that are deceptive because they are false, misleading, or not adequately and properly tested or substantiated. The Bureau has historically received complaints about greenwashing in a number of categories: Composition claims (i.e., what is in a product or its packaging); Claims about the production process of products; Claims about the disposal of products after use; Comparison claims; Vague claims; and Claims about the future (e.g., carbon neutrality by a certain date; investments in environmental projects, etc.). Tips for businesses. The Bureau outlines the following tips for businesses considering making environmental claims: Be truthful, and not false or misleading. Ensure claims are properly and adequately tested. Comparative claims; be specific about what is being compared. Avoid exaggeration.  Avoid vague environmental claims in favour of clear and specific ones.…

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ECCC Publishes Paper on Facilitating GHG Offset Projects on Crown and Public Land

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Environment and Climate Change Canada (ECCC) has released a discussion paper entitled Facilitating Projects on Crown and Public Land in Canada’s Greenhouse Gas Offset Credit System (the Paper). The purpose of the Paper is to gather feedback on preliminary considerations for projects in Canada’s Greenhouse Gas (GHG) Offset Credit System (Offset System) on provincial Crown land or public land administered by territorial governments (Crown or public land).    These considerations include (i) respecting Indigenous rights, (ii) acknowledging the role of provinces and territories in authorizing project activities, and (iii) demonstrating entitlement for offset credits issued for GHG emission reductions. These considerations were formed based on feedback from a 2022 discussion paper entitled Carbon Pollution Pricing: Considerations for facilitating Indigenous participation in the Federal Greenhouse Gas Offset System and ongoing engagement activities. Earlier this year, ECCC published a protocol for improved forest management (IFM) on private land (see our earlier bulletin here). ECCC continues to indicate that it will be initiating the development of a protocol on IFM on public land later this year.   This bulletin briefly summarizes the three key considerations outlined in the Paper:    1. Aligning with the principle of recognizing and upholding Indigenous rights   Requirements for offset projects will be guided by the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) and the right of Indigenous peoples to free, prior, and informed consent (FPIC). ECCC is proposing that projects on Crown or public land must have, as a matter of policy, the consent of Indigenous peoples holding asserted or established Aboriginal or Treaty rights in the project area before they can be registered in the federal Offset System.   Consent must be documented and must reflect support of the rights-holding group in their preferred approach. Depending on the Indigenous nation or community, this could take the form of a Band Council Resolution, Memorandum of…

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Jakarta Court Declares Revocation of Rimba Raya Forest License Void

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The State Administrative Court of Jakarta (the Court) has ruled in favor of PT Rimba Raya Conservation, declaring the Government of Indonesia’s revocation of the Forest Utilization Business License for the Rimba Raya project (the Project) void, according to a recent statement from Carbon Streaming Corporation. Although the ruling is subject to a 14-day appeal period, and as such does not yet have permanent legal force, the Court’s interlocutory decision allows activities on the project to resume immediately. Rimba Raya project. The Project is a REDD+ project registered with Verra that seeks to reduce emissions from deforestation and forest degradation. Since 2013, Rimba Raya has issued over 30 million credits, with more than 25 million of these already retired, making it the world’s largest single source of carbon credits. In Indonesia, entities developing nature-based carbon projects like the Project require a government-issued concession license to trade generated carbon credits. The license is revocable if local regulations are violated. PT Rimba Raya Conservation, the original license holder and project owner, partnered with InfiniteEARTH, the project developer registered under Verra and Indonesia’s national carbon registry, Sistem Registri Nasional (SRN). On March 2, 2024, the Indonesian government announced the revocation of the Project’s license, leaving uncertainty about its future. Remaining uncertainties. Carbon Streaming, a Toronto-based investor, had assessed the fair market value of its investment in the Project to be nil due to the revocation of the license. The Project’s future likely remains uncertain at this time, but the company has said that it will re-evaluate the fair market value of the Rimba Raya stream in the event there is a change in the facts and circumstances surrounding the Project, the revocation of the license and, the Indonesian national carbon emission regulations. For further information or to discuss the contents of this bulletin, please…

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Ontario Launches Emissions Performance Program

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Ontario’s Ministry of the Environment, Conservation and Parks (the Ministry) recently launched the Emissions Performance Program (EPP). The EPP takes proceeds collected from the Emissions Performance Standards (EPS) Program (see our earlier bulletin here) and allows large emitters to apply for funding to support greenhouse gas (GHG) reduction projects at eligible industrial facilities. The EPP aims to support covered industrial facilities to remain competitive and contribute to economic growth in Ontario. This bulletin briefly summarizes key details of the EPP. Overview. The EPP is a non-competitive program funded by compliance payments collected through the EPS. The EPP will fund capital and study-based projects. The available funds are derived from revenue collected through the purchase of compliance instruments, known as Excess Emissions Units (EEUs) under the EPS, by EPS participants to meet their compliance obligations. EPS participants eligible for the EPP can apply for a funding amount notionally equivalent to the amount they paid for EEUs. Eligible industrial facilities have been sent notification emails from the Ministry outlining their ‘notional allocation amount’ which is the maximum amount of funding they are eligible to receive. Eligibility and eligible projects. Facilities eligible for the EPP: (i) are registered in the EPS Program; (ii) have purchased EEUs; and (iii) do not generate electricity as their primary industrial activity. Examples of project activities eligible for funding include, among others: stationary equipment retrofits for energy efficiency and fuel switching; mobile equipment retrofits for energy efficiency and fuel switching; building envelope upgrades (insulation, windows, doors); heat recovery; industrial process changes; carbon capture and storage; and clean electricity and low-carbon fuel production for own use. Application for funds. Eligible applicants may apply for funding by submitting a project proposal through the Transfer Payment Ontario (TPON) portal, where EPP materials are available to organizations with a TPON account. Eligible…

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