British Columbia: Emission Offsets Regulation
www.env.gov.bc.ca/epd/codes/ggrta/offsets_reg.htm
Overview
Additionality and Quantification Procedures
Overview
Type of Standard and Context
British Columbia’s Greenhouse Gas Reduction Targets Act (GGRTA) was passed in November 2007 and came into force on January 1, 2008. The GGRTA established targets for reducing GHG emissions in British Columbia (BC) 33% below 2007 levels by 2020 and 80% below 2007 levels by 2050 (Greenhouse Gas Reduction Targets Act, S.B.C. 2007).
The legislation requires that each public sector organization be carbon neutral from 2010 onward and that the provincial government be carbon neutral for the 2008 and 2009 calendar year in relation to GHG emissions from travel of public officials (Greenhouse Gas Reduction Targets Act, S.B.C. 2007). To comply with this regulation the provincial government and public sector organizations must document actions taken to minimize GHG emissions and apply emission offsets to net all remaining emissions to zero (Greenhouse Gas Reduction Targets Act, S.B.C. 2007).
All emission offsets used in order to comply with this regulation must be acquired from the Pacific Carbon Trust on terms and conditions approved by BC’s Minister of Finance (Greenhouse Gas Reduction Targets Act, Carbon Neutral Government Regulation, B.C. Reg. 392/2008). BC’s Ministry of Environment has established an emission offsets regulation that sets out requirements for greenhouse gas reductions and removals from projects or actions to be recognized as GGRTA Offsets (Greenhouse Gas Reduction Targets Act, Emission Offsets Regulation, B.C. Reg. 393/2008). The detailed guidance document for the regulation is expected in 2009 (Ministry of Environment, 2009).
Standard Authority and Administrative Bodies
The BC Ministry of Environment serves as the regulatory authority for the BC emission offsets regulation.
The Pacific Carbon Trust is a provincial Crown corporation with a mandate … to deliver quality BC-based greenhouse gas offsets to help clients meet their carbon reduction goals and to support growth of this industry in BC” (Pacific Carbon Trust, 2009). The Pacific Carbon Trust is the designated organization from which provincial public sector organizations must acquire emission offsets to meet their compliance obligations (Greenhouse Gas Reduction Targets Act, Carbon Neutral Government Regulation, B.C. Reg. 392/2008).
Regional Scope
At this time, the BC emission offsets regulation only applies to GHG emission reduction activities in the Canadian province of British Columbia.
Recognition of Other Standards/ Linkage with Other Trading Systems
Currently there are no linkages with other trading systems. The GGRTA includes provisions to enable linkages with other offset systems, and to ensure that the adoption of other regulations is not restricted (Greenhouse Gas Reduction Targets Act, S.B.C. 2007).
Market Size and Scope
Tradable Unit and Pricing Information
All emissions reductions and removals will be expressed in terms of metric tons of carbon dioxide equivalent (Greenhouse Gas Reduction Targets Act, Emission Offsets Regulation, B.C. Reg. 393/2008)
Participants/Buyers
Provincial public sector organizations are required to participate in the emission offset regulation to comply with the GGRTA. Communities in B.C. are also welcome to participate, and most have voluntarily committed to becoming carbon neutral through reductions and the purchase of offsets. The Pacific Carbon Trust is also preparing to acquire offsets for other clients, including businesses, NGOs and individuals who wish to offset emissions. (Pacific Carbon Trust, 2009).
Current Project Portfolio
The Pacific Carbon Trust, as of July 2009, has signed agreements to purchase offsets related to 15 projects that are expected to generate over 300,000 MtCo2e of offsets over a five-year period starting in June 2009 (Pacific Carbon Trust, 2009). These fifteen offset projects are fuel switching and energy efficiency project types. Offset project information is available here.
Offset Project Eligibility
Project Types
There are no current project type restrictions.
Project Locations
All offset projects must be located in British Columbia (Greenhouse Gas Reduction Targets Act, Emission Offsets Regulation, B.C. Reg. 393/2008).
Project Size
There are no project size restrictions.
Start Date
Offset projects must have a start date no earlier than November 29, 2007 (Greenhouse Gas Reduction Targets Act, Emission Offsets Regulation, B.C. Reg. 393/2008).
Crediting Period
Currently, all offset projects will expire ten years after the validation date unless otherwise ordered by the Director of the Climate Change Branch of the Ministry of Environment (Greenhouse Gas Reduction Targets Act, Emission Offsets Regulation, B.C. Reg. 393/2008). At the end of this period, projects may be validated for another 10-year timeframe, providing project proponents submit a new project plan for validation. These submissions will be considered as new projects that must also meet the regulatory requirements.
Longer crediting periods, referred to as ‘validation periods’ are anticipated for forestry projects (Ministry of Environment, 2009).
Co-benefit Objectives and Requirements
The regulation does not specify objectives or requirements concerning co-benefits of the project.
Additionality and Quantification Procedures
Additionality Requirements
As specified in the emissions offsets regulation, all projects must meet the following additionality criteria:
- baseline scenario must comply with relevant regulations;
- baseline scenario must incorporate all relevant incentives and grants;
- financial implications of the baseline scenario must suggest it would occur if the project is not carried out;
- demonstration that the project faces financial, technological, or other barriers that are overcome, or partially overcome by the incentive of the reduction being recognized as emission offsets (Greenhouse Gas Reduction Targets Act, Emission Offsets Regulation, B.C. Reg. 393/2008).
Quantification Protocols
An optional list of approved protocols will be developed and made available (Ministry of Environment, 2009). At present, project developers are encouraged to make use of recognized protocols and adapt them as necessary to the B.C. context (Ministry of Environment, 2009). The Director of the Climate Change Branch of the Ministry of Environment also has the authority to designate mandatory protocols related to any aspect of carrying out a project, including: selection of sources, sinks, or reservoirs; baseline scenarios; quantification of GHG; and monitoring of GHG sources, sinks and reservoirs (Greenhouse Gas Reduction Targets Act, Emission Offsets Regulation, B.C. Reg. 393/2008).
Permanence of carbon sequestration or carbon capture and storage projects is addressed by requiring the development of a risk-mitigation and contingency plan to ensure that the GHG reduction achieved will endure for either at least 100 years or a period comparable to the atmospheric effect of a non-sequestration project GHG emission reduction (Greenhouse Gas Reduction Targets Act, Emission Offsets Regulation, B.C. Reg. 393/2008). The risk-mitigation and contingency plan may include: a plan for maintenance and protection of sinks, description of legal means for long-term protection, a plan for monitoring any reversal, a description of arrangements to address the risk of reversal, a description of discounts applied in the calculation of project reductions, and a description of any arrangements made to replace credits in the event of a reversal (Greenhouse Gas Reduction Targets Act, Emission Offsets Regulation, B.C. Reg. 393/2008).
Project Approval Process
Validation and Registration
Offset project plans must be validated by a validation body in a manner consistent with ISO 14064-3 (Greenhouse Gas Reduction Targets Act, Emission Offsets Regulation, B.C. Reg. 393/2008).
Until July 1, 2010, a team which includes a person authorized to act as an auditor of a company and at least one qualified professional (as defined in the regulation) will be able to act as a validation or verification body (Greenhouse Gas Reduction Targets Act, Emission Offsets Regulation, B.C. Reg. 393/2008). After July 1, 2010 validation and verification bodies will need to be accredited, in accordance with ISO 14065, by a member of the International Accreditation Forum to use ISO 14064-3 (Greenhouse Gas Reduction Targets Act, Emission Offsets Regulation, B.C. Reg. 393/2008).
Monitoring, Verification and Certification
Before offsets can be recognized under the regulation, an offset project report must be submitted to a verification body for review (Greenhouse Gas Reduction Targets Act, Emission Offsets Regulation, B.C. Reg. 393/2008). The verification body must verify the offset project report in a manner consistent with ISO 14064-3 (Greenhouse Gas Reduction Targets Act, Emission Offsets Regulation, B.C. Reg. 393/2008).
The same requirements for the validation body apply for the verification body and are described above.
Registries and Fees
Under the BC regulation, project proponents must include in the project plan an assertion that they have a superior claim of ownership to the GHG reduction. Additionally, one of the requirements for the recognition of a GHG reduction as an offset is that the reduction has not previously been recognized as an offset under GRRTA or in another offset program (Greenhouse Gas Reduction Targets Act, Emission Offsets Regulation, B.C. Reg. 393/2008). Pacific Carbon Trust tracks offsets retired on behalf of clients on its website.
Selected Issues
Detailed guidance for British Columbia’s emissions offsets regulation is under development.
References
Greenhouse Gas Reduction Targets Act, S.B.C. 2007, c. 42. See The Revised Statutes and Consolidated Regulations of British Columbia.
Greenhouse Gas Reduction Targets Act Emission Offsets Regulation. B.C. Reg. 393/2008, December 9, 2008.
Greenhouse Gas Reduction Targets Act Carbon Neutral Government Regulation. B.C. Reg. 392/2008, December 9, 2008.
Ministry of Environment. 2009. Greenhouse Gas Reduction Targets Act (GGRTA). April 2009.
Pacific Carbon Trust. 2009. Pacific Carbon Trust. Accessed 03 July 2009.
Public Sector Organizations (PSOs) include the provincial government and other provincial public sector organizations that are included within the government reporting entity under the Budget Transparency and Accountability Act, unless specifically excluded by regulation (Greenhouse Gas Reduction Targets Act, Carbon Neutral Government Regulation, B.C. Reg. 392/2008).