Taking action to reduce carbon pollution is critical as Canada builds a strong and resilient economy and a cleaner future.
Today, the Government of Canada launched Canada's Greenhouse Gas Offset Credit System, a key measure outlined in Canada's 2030 Emissions Reduction Plan. The offset system will give municipalities, foresters, farmers, Indigenous communities, and others a market-based incentive to undertake innovative projects that reduce greenhouse gases (GHGs) by preventing emissions and removing GHGs from the atmosphere.
Under the new system, registered participants can carry out projects following a federal offset protocol, which sets out a consistent approach for measuring GHG emissions reductions or removals for specific types of projects. These projects can generate one tradeable offset credit for every tonne of emissions they reduce or remove from the atmosphere. Once a credit is earned, it can be sold to others to help them meet their compliance obligations or emissions reduction goals under the carbon pollution pricing system.
The Honourable Steven Guilbeault, Minister of Environment and Climate Change, today launched the first in a developing series of federal offset protocols. Under the new Landfill Methane Recovery and Destruction protocol, municipalities and other landfill operators will be able to generate offset credits for recovering landfill gas from their operations and destroying it or repurposing it into energy with technologies such as flares, boilers, turbines, and engines. Reducing greenhouse gases from waste (responsible for 7 percent of Canada's greenhouse gases) is a key component to achieving Canada's emissions reduction targets.
Four additional offset protocols are currently in development for activities such as advanced refrigeration, agriculture, and forest management. Environment and Climate Change Canada has also identified the next round of protocols for development, which will include a protocol for Direct Air Carbon Capture and Sequestration, technologies that directly remove carbon dioxide from the atmosphere and permanently store it underground.
Canada's Greenhouse Gas Offset Credit System is aligned with the Pan-Canadian Greenhouse Gas Offsets Framework and incorporates expertise from across the country. Provinces including Alberta, British Columbia and Quebec have already demonstrated leadership in this area by launching provincial offset credit programs, and by sharing their experiences to help support the design of the federal system. The availability of offset credits is expected to help stimulate innovation and private sector investment in economic activities to reduce emissions, thus keeping Canada competitive in a decarbonizing economy.
