Canada is developing a federal GHG offset system that would cover activities not covered by carbon pricing. Initially, the system will focus on voluntary projects in agriculture, waste and forestry. Credits generated under the system can be used to reduce the compliance costs of industrial facilities covered by the Output-Based Pricing System (OBPS) component of Canada’s Greenhouse Gas Pollution Pricing Act.
The Federal GHG Offset System will be national in scope, with a focus on enabling offset project development in provinces and territories without offset programs. The proposed Greenhouse Gas Offset regulation is available for public comment until May 5, 2021.