Resilient LLP (formerly DeMarco Allan LLP)
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DT Vollmer

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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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TNFD Publishes Additional Sector and Value Chain Guidance

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The Taskforce on Nature-related Financial Disclosures (TNFD) has released additional guidance covering eight real economy sectors, updated additional guidance for financial institutions, and guidance on value chains. These resources are designed to help companies implement the TNFD Recommendations more effectively. The TNFD Recommendations are structured around four core pillars: (i) Governance, (ii) Strategy, (iii), Risk and Impact Management, and (iv) Metrics & Targets. They are aligned with the International Sustainability Standards Board’s IFRS Sustainability Standards, which incorporate the Task Force on Climate-related Financial Disclosures recommendations (see our earlier bulletin here). Additionally, the TNFD Recommendations support the goals and targets of the Kunming-Montreal Global Biodiversity Framework (see our earlier bulletin here). TNFD also announced that it has experienced a surge in adoption, with a 30% increase in companies implementing its reporting recommendations since January. This growth is attributed to 96 additional firms committing to TNFD’s nature-related disclosure framework, bringing the total number of committed firms to 416. This bulletin provides a brief overview of the TNFD’s additional guidance and important information about ongoing stakeholder consultations. Additional sector guidance. The TNFD recognizes significant sectoral differences for corporations implementing the TNFD’s ‘LEAP’ (Locate, Evaluate, Assess and Prepare) approach. To address this variation, it has provided additional sector-specific guidance that is supplemental and intended to complement the TNFD’s Guidance on assessment of nature-related issues: the LEAP approach. The additional guidance offers detailed instructions on applying the TNFD core global disclosure metrics, core sector metrics, and the LEAP approach within the following sectors: Aquaculture; Biotechnology and Pharmaceuticals; Chemicals; Electric Utilities and Power Generators; Food and Agriculture; Forestry and Paper; Metals and Mining; and Oil and Gas. Additional guidance for financial institutions. The updated additional guidance for financial institutions (version 2.0) provides additional guidance for financial institutions to apply the TNFD Recommendations, and is applicable to…

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ICMA Announces Guidance for Green Enabling Projects and Sustainability-linked Bonds

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The International Capital Market Association (ICMA) has released a series of updated publications and guidance through the Green, Social, Sustainability and Sustainability-Linked Bond Principles (SLBP) (collectively, the Principles). These updates include new Green Enabling Projects Guidance (the Guidance) and guidelines for Sustainability-Linked Loan financing Bonds (the Guidelines), the latter of which are issued jointly with the Loan Market Association. The Principles are the global benchmark for the $5 trillion sustainable bond market that represents the largest source of market finance dedicated to sustainability and climate transition, providing an important framework for corporates, financial institutions, and government bodies globally and referenced by 98% of sustainable bond issuance. This bulletin briefly summarizes key aspects of the updated Guidance and Guidelines. Green Enabling Projects Guidance Overview. The Guidance is intended to provide guidance for “green enabling projects”, which are those projects that are not explicitly considered “green” but are nevertheless critical to eligible green projects (“Green Enabling Projects”). The Guidance provides guidance on: (i) identifying the role Green Enabling Projects play in catalysing and scaling the transition to a low-carbon economy in line with the goals of the Paris Agreement while recognizing the complexities of value chains and challenges of multiple end-uses, (ii) addressing both induced and avoided emissions; and (iii) the management of related environmental and social (E&S) risks. The Guidance primarily applies to the following sectors when necessary for an enabled green project’s value chain to be developed and/or implemented: (i) mining and metals; (ii) building and construction supplies and equipment; (iii) chemicals and specialty chemicals; (iv) ICT and telecommunication networks; and (v) manufacturing of industrial parts and components. Specific criteria. Green Enabling Projects must meet the following criteria: necessary for an enabled green project’s value chain; no carbon lock-in; clear, quantifiable, and attributable environmental benefit; and mitigated adverse E&S impacts.…

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ISSB Announces Further Harmonization of Sustainability Disclosures

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The International Sustainability Standards Board (ISSB) on Monday announced a series of significant initiatives, strategic partnerships, and collaborations aimed at harmonizing sustainability reporting requirements for companies. The ISSB provided updates on its new two-year work plan, which focuses on further harmonization and consolidation of the disclosure landscape in response to market demand. Key areas of focus include corporate climate transition plans and greenhouse gas (GHG) emissions measurement across the value chain. This bulletin highlights the key initiatives, strategic partnerships, and collaborations being pursued by the ISSB. Harmonizing disclosures about transition plans. The ISSB indicated that it intends to streamline and consolidate frameworks and standards for disclosures about transition plans. This work is expected to align with the ISSB’s focus over the next two years on supporting the implementation of IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information (IFRS S1) and IFRS S2 Climate-related Disclosures (IFRS S2) (see our earlier bulletin here). The ISSB indicated that it will focus on providing high-quality, decision-useful information consistent with IFRS S2, instead of requiring transition planning. The ISSB announced that the IFRS Foundation will assume responsibility for disclosure-specific materials developed by the Transition Plan Taskforce, which draws from the work of the Glasgow Finance Alliance for Net Zero (GFANZ). The materials will be housed on the IFRS Sustainability Knowledge Hub and used to develop educational materials that align with IFRS S2’s global baseline and focus on climate-related risks and opportunities. Measuring GHG emissions effectively. The IFRS Foundation has taken a crucial step in supporting credible net-zero transition plans in the private sector by signing a Memorandum of Understanding with the GHG Protocol, a global leader in emissions calculations. This collaboration will enable the two organizations to work together on updates and decisions related to their standards, including the appointment of an ISSB…

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Canada Implements Clean Economy Investment Tax Credits

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This bulletin complements last week’s update on the Fall Economic Statement Implementation Act, 2023 (Bill C-59). In addition to the climate-related amendments to the Competition Act (read our earlier bulletin here), Bill C-59 implements significant clean economy investment tax credits (ITCs), for clean technology (CT) and carbon capture utilization and storage (CCUS), as well as clean hydrogen (CH) and clean technology manufacturing (CTM). This bulletin briefly summarizes the amendments to the Income Tax Act (the Act) and Income Tax Regulations (the Regulations) that implement the CT ITC and CCUS ITC. Clean Technology Investment Tax Credit. Bill C-59 amends the Act and Regulations to implement the CT ITC, initially proposed in the 2022 Fall Economic Statement and expanded in both the 2023 Fall Economic Statement (FES) and 2023 Budget (read our earlier bulletins here and here). Key provisions of the now implemented and expanded CT ITC include: refundable tax credit for capital invested in the adoption and operation of new clean technology property in Canada from March 28, 2023, to December 31, 2034; rate may be up to 30% of the capital cost of CT property that is acquired and that becomes available for use from March 28, 2023, to December 31, 2033; rate may be up to 15% for property acquired and that becomes available for use in 2034, and will be unavailable after 2034; available for investments in the following types of CT property: equipment used to generate electricity from solar, wind and water energy; stationary electricity storage equipment that does not use any fossil fuel in operation (such as batteries and pumped hydroelectric storage); active solar heating equipment, air-source heat pumps and ground-source heat pumps; non-road zero-emission vehicles and related charging and refueling equipment that is used primarily for such vehicles; equipment used exclusively for the purpose of…

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