The B.C. Ministry of Environment and Climate Change Strategy (the Ministry) has released the latest draft of the B.C. Forest Carbon Offset Protocol 2.0 (the Protocol). The Protocol is the long-awaited updated version of the first version of the Protocol which was introduced in 2011 and repealed in 2015. The Protocol is expected to enable new forest carbon offset projects in B.C. This bulletin briefly summarizes key updates to the Protocol and related proposed amendments to the Greenhouse Gas Emission Control Regulation (the Regulation). The Protocol contains both a methodology for carrying out certain emission offset projects that remove emissions with forest sinks and reservoirs, and guidance associated with such projects. In addition, the Protocol creates legal requirements that project proponents, validation bodies, and verification bodies must follow for the proponent to obtain offset units under the Greenhouse Gas Industrial Reporting and Control Act. The Ministry noted that the Protocol has several substantial changes from earlier draft versions including: further refined eligibility; reporting and maintenance requirements; and the addition of further guidance, equations, tools and definitions. The Ministry also announced the following proposed amendments to the Regulation to be brought into force prior to the publishing of the Protocol: creating and clarifying definitions regarding the identification and treatment of reversals during the crediting period; distinguishing between “avoidable reversals” and “unavoidable reversals”, defining each as follows: “avoidable reversals” are reversals where the project proponent substantially increased the risk that the reversal would occur by failing to comply with commitments to maintain carbon sequestration levels that are set out in project plans, or requirements to maintain carbon sequestration set out in protocols or covenants, or the project proponent failed to take appropriate measures in relation to the avoidance of the risk that the reversal would occur; “unavoidable reversals” are reversals that are…
The Government of British Columbia (B.C.) has introduced Bill 15, the Low-Carbon Fuels Act (LCFA), to replace the Greenhouse Gas Reduction (Renewable and Low Carbon Fuel Requirements) Act (the GGRA) and update the Renewable and Low Carbon Fuel Requirements Regulation, which together are known as B.C.’s low carbon fuel standard (LCFS). The government indicated that the new LCFA is meant to make its greenhouse gas (GHG) reduction legislation easier to understand, administer, and enforce. This bulletin briefly highlights key changes to the LCFS. Proposed changes to the LCFS include: Fuel for Aviation and Marine Use. The LCFA would include fuel supplied for aviation and marine use, thereby ensuring that all fossil-derived transportation fuels supplied in B.C. are subject to carbon-intensity requirements and generate market opportunities for a wider range of low-carbon fuels. Direct Air Capture and Sequestration. The LCFA would authorize the provision of compliance credits for direct air-capture and permanent sequestration of GHGs, which is intended to support investments in technologies that remove CO2 from the atmosphere. Increase Use of Low-Carbon Products, including EVs. The LCFA would require some utilities to use a portion of their revenues from the sale of low-carbon fuel credits for programs dedicated to increasing the use of low-carbon products. This is intended to further supports the purchase of electric vehicles. Expand Access for Credit Trading. The LCFA would expand access for earning low-carbon fuel credits and engaging in credit trading to persons other than fuel suppliers. The government indicated that this will provide a new funding mechanism for businesses, communities, academic institutions, and others that may commercialize new fuel production methods or develop clean-energy technologies that reduce GHG emissions. Provide Clarity. The LCFA is intended to make the LCFS easier to administer and enforce, enhance understanding, and provide regulatory certainty for fuel suppliers and those making investments in low-carbon fuels. The LCFA includes several transitional provisions including affirming that…