New draft regulations to create a new national system to offset greenhouse gas to minimize carbon emissions and create jobs have been announced.
The Federal Greenhouse Gas Offset System is a commodity solution that seeks to encourage creativity and infrastructure development in economic activities that reduce emissions.
Under Canada’s carbon price for industry, the Output-Based Pricing Scheme (OBPS), system would promote a local carbon trading platform. According to the Minister for Environment and Climate Change, Jonathan Wilkinson, the system involves using regulated facilities that surpass their emission
He went on to say that it is a lower-cost alternative that will help reduce emissions in Canada and create job opportunities in the sectors like agriculture, forestry, and waste.
Once in place, the Federal Greenhouse Gas Offset Method will increase demand for projects that minimize greenhouse gas emissions while also generating federal offset credits across Canada.
Parallel to the legislation, protocols for high-priority project types are being built to provide companies with additional low-cost enforcement options. A municipality may, for example, install technology to capture methane that would otherwise be released into the atmosphere.
The region could receive federal offset incentives, which it could then sell to manufacturing facilities that are subject to the Output-Based Business Model.