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GHG Offset Credit System

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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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ECCC Publishes Protocol for Improved Forest Management on Private Land

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Environment and Climate Change Canada (ECCC) yesterday published the Improved Forest Management on Private Land, Version 1.0 protocol (IFM Protocol) alongside the previously published protocols for Landfill Methane Recovery and Destruction and Reducing Greenhouse Gas Emissions from Refrigeration Systems (see our earlier bulletin here). The IFM Protocol provides requirements for project implementation and the methodology for quantifying greenhouse gas (GHG) reductions from eligible IFM projects. Carbon offset credits generated under the Canadian Greenhouse Gas Offset Credit System Regulations (the Regulations) from eligible projects can be used to comply with obligations under the federal Output-Based Pricing System or to meet voluntary climate targets or commitments.  The launch of the IFM Protocol follows British Columbia’s recently published revised Forest Carbon Offset Protocol 2.0 earlier this month, which, among other updates, now requires First Nation engagement and consultation on all projects (see our bulletin on the draft protocol here).  This bulletin briefly summarizes the IFM Protocol and provides updates regarding other protocols under development by ECCC.  The IFM Protocol Eligible projects under the IFM Protocol may register in Canada’s GHG Offset Credit System if the following conditions, among others, are met: Location. The project must be located in private forestland where carrying out forest management activities is legally permissible and is considered merchantable (“managed forestland”) in a province or territory in Canada. However, the IFM Protocol is also applicable to provincial and federal Crown lands where a First Nation has exclusive use and occupation. Baseline scenarios. Baseline scenarios may be updated during the crediting with a minimum of 5 years between updates. To determine the baseline scenario, proponents must follow a 3-step process set out in the IFM Protocol to determine regional and project-specific scenarios and the most conservative baseline scenarios between them. Eligible project activities. Project proponents may undertake any IFM activity that enhances carbon stocks within the project site relative to the baseline scenario. Eligible project activities include,…

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ECCC Publishes Refrigeration Offset Protocol; Key Updates on Other Protocols

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Environment and Climate Change Canada (ECCC) has published the Reducing Greenhouse Gas Emissions from Refrigeration Systems, Version 1.0 protocol (the Refrigeration Protocol). ECCC also published a new version of the Landfill Methane Recovery and Destruction, Version 1.1 protocol which was first published on June 8, 2022. The Refrigeration Protocol supports Canada’s commitments to phase down hydrofluorocarbons (HFCs) under the Kigali Amendment to the Montreal Protocol, wherein developed countries agreed to gradually phase down HFCs starting in 2019 to 15% of calculated baseline levels by 2036. This bulletin briefly summarizes the Refrigeration Protocol and provides important updates on protocol development under Canada’s Greenhouse Gas (GHG) Offset Credit System. The Refrigeration Protocol Eligible projects under the Refrigeration Protocol may register in Canada’s GHG Offset Credit System if the following conditions are met: Location. The project must be located in a province or territory in Canada. Additionality. GHG emission reductions generated by the project must not already be incentivized by carbon pricing and must not occur as a result of federal, provincial or territorial regulations or where a project proponent is required to retrofit or replace a pre-existing refrigeration system or its refrigerant. Baseline conditions. The system used in the baseline scenario must be either a stand-alone medium- or low-temperature refrigeration system, centralized refrigeration system, condensing unit, chiller, commercial air conditioning system or a heat pump. Pre-existing refrigeration systems must be operating for a minimum of three years prior to the project start date. Eligible project activities. The proponent can retrofit a pre-existing refrigeration system to use an eligible refrigerant, install a new refrigeration system containing an eligible refrigerant, and if applicable, destroy HFCs contained in refrigerant taken out of a pre-existing refrigeration system.   Eligible refrigerant. The refrigerant used in the project scenario must have a global warming potential (GWP) lower than values provided…

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Canada Officially Launches GHG Offset Credit System

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Environment and Climate Change Canada (ECCC) today announced the launch of Canada’s Greenhouse Gas Offset Credit System, with the publication of the final regulations in Canada Gazette II. As part of the announcement, ECCC also announced that municipalities and other landfill operators will now be able to generate offset credits under the finalized Landfill Methane Recovery and Destruction protocol (see our earlier bulletins here and here) for recovering landfill gas from their operations and either destroying it or repurposing it into energy with technologies such as flares, boilers, turbines, and engines. ECCC is currently developing the following federal offset protocols: Reducing GHG Emissions from Refrigeration Systems; Improved Forest Management; Enhanced Soil Organic Carbon; and Livestock Feed Management.  ECCC has also indicated that over the summer it will begin development of a Direct Air Carbon Capture and Sequestration protocol, after which it will start work on the following new protocols: Improved Forest Management on Public Lands; Bioenergy Carbon Capture and Sequestration; Livestock Manure Management; and Anerobic Digestion. ECCC also announced that it is looking for interested individuals to provide input as external technical experts and assist with the development of the Direct Air Carbon Capture and Sequestration protocol. Interested individuals are invited to visit the GHG Offset Credit System website for more information on how to submit their candidacy packages by July 31, 2022. For further information or to discuss the contents of this bulletin, please contact Lisa DeMarco at lisa@resilientllp.com.

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