Offset Protocol


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…

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The Protocol is the long-awaited updated version of the first version of the Protocol which was introduced in 2011 and repealed in 2015.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…

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.

Environment and Climate Change Canada (ECCC) yesterday published draft Federal GHG Offset Protocols for Landfill Methane Recovery and Destruction and Reducing Greenhouse Gases from Refrigeration Systems (the Draft Protocols) for a 30-day comment period (read our earlier bulletin announcing the development of draft protocols here). ECCC is in the process of developing protocols to advance the Federal GHG Offset System under Part 2 of the Greenhouse Gas Pollution Pricing Act and in accordance with proposed Greenhouse Gas Offset Credit System Regulations published last year.   Public Consultation ECCC is seeking public comment on the Draft Protocols to help inform the development of the final protocols. ECCC intends to publish the final versions mid-2022. Interested stakeholders have until February 18, 2022 to submit feedback on the Draft Protocols by emailing the Offsets and Emissions Trading Section of ECCC.    Future Protocols ECCC is also currently working on developing Federal GHG Offset Protocols for the following: Improved Forest Management Enhanced Soil Organic Carbon Livestock Feed Management We anticipate draft protocols on the above to be published later this year. For assistance with comments, further information, or to discuss the contents of this bulletin, please contact Lisa DeMarco at lisa@resilientllp.com.