The federal government of Canada has released draft regulations on a new federal greenhouse gas (GHG) offset system, which would allow municipalities, farmers, indigenous communities, businesses, and others to earn offset credits for projects that reduce GHG emissions or take them out of the atmosphere. Initiatives may include advanced refrigeration systems, landfill methane management, forest management and sustainable agricultural land management.
The new scheme would help industries and sectors regulated under the Output-Based Pricing System to meet their emissions limits by buying offset credit. Under the proposed system, firms that exceed their emissions limits must either pay a fee for each tonne of CO2 emitted over a given quota or trade in a surplus offset credit. The regulation should be finalised in fall 2021.
Canada's GHG emissions reached 729 MtCO2eq (excluding LULUCF) in 2018 according to the national inventory. This is 2% below 2005 levels. Since 2013, emissions are relatively stable (around 700-730 MtCO2eq). CO2 emissions from energy combustion have grown slowly since 2009, by 0.8%/year on average (compared to 1.5%/year between 1990 and 2008). In 2019, they reached 578 Mt, Canada’s second highest level ever (581 Mt in 2007).
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