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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 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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Budget 2022: Key climate, energy, and Indigenous highlights

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Deputy Prime Minister and Minister of Finance Chrystia Freeland yesterday released Budget 2022: A Plan to Grow Our Economy and Make Life More Affordable (Budget 2022). This bulletin outlines key climate, energy, and Indigenous highlights from Budget 2022, part of total new spending of $31.2B, which includes: A proposal to establish the Canada Growth Fund (initial investment of $15B over five years), directly targeted at reducing emissions and enabling the transition to a low-carbon economy. Confirmation of the government’s intention to establish a refundable investment tax credit for carbon capture, utilization and storage (CCUS) projects to the extent that they permanently store captured CO2 through an eligible use. Plans to engage with experts on establishing an investment tax credit of up to 30 per cent, focused on net-zero technologies, battery storage solutions, and clean hydrogen. Support for the co-development of an Indigenous Climate Leadership Agenda to support self-determined action in addressing Indigenous Peoples’ climate priorities. Climate Budget 2022 includes new and proposed funding supporting important climate action, as follows: Canada Growth Fund. Budget 2022 proposes establishing the Canada Growth Fund, with an initial $15B investment over the next five years and the aim of attracting substantial private sector investment supporting the following economic policy goals: reduce emissions and contribute to achieving Canada’s climate goals; diversify the economy and bolster exports by investing in the growth of low-carbon industries and new technologies across new and traditional sectors of Canada’s industrial base; and support the restructuring of critical supply chains in areas important to Canada’s future prosperity—including our natural resources sector. Clean technology. Budget 2022 proposes the following new clean technology funding and investments: engage with experts to establish an investment tax credit of up to 30 per cent, focused on net-zero technologies, battery storage solutions, and clean hydrogen; provide $2.2B over…

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Peoples Forests Partnership Aims to Mobilize $20B Per Year to Indigenous Conservation Projects

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The recently launched Peoples Forests Partnership (the Partnership), aims to secure commitments to mobilize $20 billion per year by 2030 to Indigenous Peoples, traditional owners, and local communities (IPLCs) for community-based tropical forest conservation and restoration projects in the Global South. Facilitating members of the Partnership include Forest Trends, RECOFTC, Wildlife Works Carbon, Everland, and Green Collar. This Partnership could help reduce 2 billion tonnes of CO2 emissions from deforestation each year, protect 500 million hectares of threatened tropical forest, and support livelihoods and bioeconomy development for over 50 million people in forest communities.    The Partnership was launched last year during the COP 26 conference in Glasgow, following an announcement of funding of $1.7B for IPLCs pledged by Norway, UK, US, Germany, and the Netherlands. The funding, to be provided through 2025, will support the capacity of IPLCs to govern themselves collectively, assist with mapping and registration work, back national land reform, and help resolve conflict over territories.   The Partnership will support performance-based payments, such as carbon credits, and other climate funding mechanisms, including a financing facility specifically focused on strengthening territorial governance to be managed by Forest Trends. The Partnership is organized around two governing principles (i) forest communities are essential conservation partners; and (ii) community-based, values-driven climate and conservation finance projects have the potential to create a future with forests that aligns with forest community rights to their territories, economic self-determination, and cultural traditions.   Facilitating members represent a collective portfolio that includes: over 250,000 Indigenous and other forest community members receiving direct market finance in recognition for protecting forests; ​over 2 million hectares of tropical forests with active climate finance projects; financing already in place for a portfolio of community-based forest conservation projects that will deploy $2 billion in private investment and stop 200 million tonnes of deforestation emissions…

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