Carbon pollution pricing: options for a Federal Greenhouse Gas Offset System, chapter 8
Collaboration with provincial and territorial governments
The Federal Offset System will not replace provincial offset systems. The Output-Based Pricing System (OBPS) Regulations will continue to allow recognized units or credits from existing provincial/territorial offset systems to be used for compliance by covered facilities. If new compliance offset systems are developed in Canada, Environment and Climate Change Canada will assess them in accordance with the requirements in the OBPS Regulations.
The Government of Canada will engage with provinces and territories to facilitate coordination among offset systems in order to avoid double-counting, double-use, or double-issuance of offset credits for the same project activity.
The Government of Canada will work with provinces and territories to enable the alignment of carbon market infrastructure with the intent of facilitating fungibility and encouraging increased investment in offset projects. Agreements may be established with provinces/territories to provide enforcement powers related to offset program implementation, as well as for governance and oversight.