Resilient LLP (formerly DeMarco Allan LLP)
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DT Vollmer

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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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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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