The federal government has published draft regulations for a nationwide trading marketplace
As the conversation about climate change moves once again into the spotlight, Canada has moved a step closer to a nationwide carbon credit trading marketplace.
The federal government has published draft regulations that will enable the establishment of the marketplace to allow companies in several sectors to reduce their impact on climate change by voluntarily reducing their emissions through revenue-earning credits.
The Federal Greenhouse Gas Offset System should benefit farmers, foresters, Indigenous communities, municipalities, and other project developers.
The system will support a domestic carbon trading market under Canada’s carbon price for industry – the Output-Based Pricing System (OBPS)
When projects that reduce greenhouse gas emissions subject to eligibility criteria earn credits for their efforts, these can be sold to companies that need to offset their own carbon footprint.
“The development of the Federal Greenhouse Gas Offset System will mean farmers can be recognized and rewarded for reducing greenhouse-gas emissions on their farms by implementing practices that improve the carbon sequestered in their soil,” explained agriculture minister Marie-Claude Bibeau.
The value of the credits used for the system will be determined by supply and demand.
While the system will be regulated, it is not compulsory and does not replace existing provincial offset rules, such as those in Alberta and British Columbia.
