Canada launches greenhouse gas offset credit system
Canada has launched the Greenhouse Gas Offset Credit System, a market-based incentive to undertake innovative projects that reduce greenhouse gases (GHGs) by preventing emissions and removing GHGs from the atmosphere. "Establishing a federal carbon offset market is a win-win for the economy and the environment," said Environment and Climate Change Minister Steven Guilbeault. According to the Ministry, under the new system, registered participants can carry out projects following a federal offset protocol, which sets out a consistent approach for measuring GHG emissions reductions or removals for specific types of projects. These projects can generate one tradeable offset credit for every tonne of emissions they reduce or remove from the atmosphere. Once a credit is earned, it can be sold to others to help them meet their compliance obligations or emissions reduction goals under the carbon pollution pricing system, the release said. The offset system was designed to work with the current carbon pollution pricing system as a way to extend the price signal and incentivize companies to take actions that are above and beyond legal requirements or common practice, and that are not covered by the price on carbon pollution.