Canada on June 8 launched a credit system for greenhouse gas offsets, a major part of its plan to cut carbon emissions, starting with a set of rules stipulating how projects can generate tradable credits by capturing gas from landfills.
The government said protocols for four other sectors including agriculture and forest management are under way. It will also start developing protocols for carbon capture technology, which Canada's high-polluting oil industry is betting on to slash its emissions, this summer.
Prime Minister Justin Trudeau's Liberal government has pledged to cut climate-warming emissions 40-45% below 2005 levels by 2030. Greenhouse gas emissions from waste, including landfills, make up 7% of Canada's total carbon output.
The greenhouse gas offset credit system is intended to support a domestic carbon offset trading market, and the government said it will create new economic opportunities for companies and municipalities reducing emissions.
Participants can register projects and generate one tradable offset credit for each tonne of emissions reduced or removed from the atmosphere, providing their projects follow the federal offset protocols that set out exactly which activities are eligible.
Credits can then be sold to others, such as heavy industrial emitters obliged to limit carbon pollution, or to companies wanting to voluntarily offset their emissions.
"Starting with landfills, we're putting in place a market-based mechanism to incentivize businesses and municipalities to invest in the technologies and innovations that cut pollution," Environment Minister Steven Guilbeault said in a statement.
The government expects the price of credits to broadly track Canada's price on carbon, which is currently set at C$50 a tonne and will ramp up to C$170 a tonne by 2030.
However, environmental groups warned allowing polluters to purchase offset credits instead of cutting their own emissions risked undermining climate goals.
"Offsetting doesn't stop carbon from entering the atmosphere and warming our world, it just keeps it off the books of big polluters responsible,” said Greenpeace Canada spokesman Shane Moffatt.
Recommended Reading
NOV's AI, Edge Offerings Find Traction—Despite Crowded Field
2024-02-02 - NOV’s CEO Clay Williams is bullish on the company’s digital future, highlighting value-driven adoption of tech by customers.
Hess Corp. Boosts Bakken Output, Drilling Ahead of Chevron Merger
2024-01-31 - Hess Corp. increased its drilling activity and output from the Bakken play of North Dakota during the fourth quarter, the E&P reported in its latest earnings.
The OGInterview: Petrie Partners a Big Deal Among Investment Banks
2024-02-01 - In this OGInterview, Hart Energy's Chris Mathews sat down with Petrie Partners—perhaps not the biggest or flashiest investment bank around, but after over two decades, the firm has been around the block more than most.
Petrie Partners: A Small Wonder
2024-02-01 - Petrie Partners may not be the biggest or flashiest investment bank on the block, but after over two decades, its executives have been around the block more than most.
Nebula Energy Buys Majority Stake in AG&P LNG
2024-01-31 - AG&P will now operate as an independent subsidiary of Nebula Energy with key offices in UAE, Singapore, India, Vietnam and Indonesia.