Carbon pollution pricing: options for a Federal Greenhouse Gas Offset System, chapter 4
Federal GHG Offset System design considerations
Because greenhouse gas (GHG) offsets take the place of direct GHG emission reductions at a covered facility, the Federal GHG Offset System will only issue Offset Credits to project activities that represent real, quantified, verified and unique GHG reductions that are additional to what would have occurred in the absence of the project. The design of the Federal GHG Offset System will also take into consideration the following principles:
- Reductions occur in Canada: GHG reductions are domestic and support actions in Canada to achieve climate change targets under the Paris Agreement.
- Complement existing climate policies: Promotes GHG reduction projects across sources of emissions not covered by carbon pricing, generating additional economic opportunities in sectors such as agriculture and forestry.
- Administratively simple: The system is as simple and cost-effective to administer as practical, minimizes burden and costs for participants, while ensuring a rigorous commitment to environmental integrity.
- Builds on experience: The system builds on the experience gained from existing project-based crediting systems and carbon markets in Canada as well as in other jurisdictions.
Environment and Climate Change Canada welcomes comments on all design considerations outlined in this paper.