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Canada Carbon Offset Policy

Canada Carbon Offset Policy. Conservation Agriculture Carbon Offset Consultation October 30, 2008 Don McCabe Soil Conservation Council of Canada. Presentation Outline. Canada’s Federal Approach Canada’s Provincial Approach In the Year 2020….

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Canada Carbon Offset Policy

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  1. Canada Carbon Offset Policy Conservation Agriculture Carbon Offset Consultation October 30, 2008 Don McCabe Soil Conservation Council of Canada

  2. Presentation Outline • Canada’s Federal Approach • Canada’s Provincial Approach • In the Year 2020….

  3. Canadian government prescription for dealing with emissions • “Turning the Corner” • various compliance mechanisms - tech fund (70% @ $15/MT), offsets 20%, credit for early action, surplus • January 1, 2010 compliance plan is required by LFE’s • CO2 is a toxic substance under CEPA and linked to Criminal Code of Canada

  4. Canadian government prescription for dealing with emissions • Reduction of emissions from Large Final Emitters (LFEs) (electricity production, oil and gas refining, mining and manufacturing) are the only emitters targeted for regulation • Sequestration of carbon, or reductions of N2O and methane will be credited • Offset system is designed to allow LFEs to purchase surplus credits

  5. Federal Government Messaging • Turning the Corner Release, March 2008 “…The private sector will play a substantial role, including developing“ quantification approaches for project types for approval by the federal government…” • Initially, EC was to run the protocol stakeholder review process • Federal Cabinet rejected this in June 2008 Identified this as the role of the private sector and part of the development of Quantification Protocols

  6. Eligible Project Types • Methane Management • Landfill Gas • Coal Bed/Mine/Ventilation Methane • Composting • Aerobic Landfill Bioreactor • Wastewater Treatment • Renewable Energy • Wind, Solar, Small Hydro • Biomass to Energy • District Heating • Transportation • Road Rehabilitation • Modal Shifting • Waste Management • Reusing flared well gas • Non-incineration thermal waste management • Other • N2O abatement • Biofuels • Agricultural • Beef Feeding – Edible Oils • Beef – Days on Feed • Beef – Age at Slaughter • Anaerobic Digestors • Pork – Manure and Feeding • Tillage • Energy Efficiency • Energy Efficiency • Waste Heat Recovery • Buildings (Residential and Industrial/Commercial) • Forestry • Afforestation • Forest Management (CCAR) • Fossil Fuel Based Energy • Fuel Switching • Geological Sequestration • Acid Gas Injection • Enhanced Oil Recovery Prioritization Needed

  7. Eligible Project Types • Methane Management • Landfill Gas • Coal Bed/Mine/Ventilation Methane • Composting • Aerobic Landfill Bioreactor • Wastewater Treatment • Renewable Energy • Wind, Solar, Small Hydro • Biomass to Energy • District Heating • Transportation • Road Rehabilitation • Modal Shifting • Waste Management • Reusing flared well gas • Non-incineration thermal waste management • Other • N2O abatement • Biofuels • Agricultural • Beef Feeding – Edible Oils • Beef – Days on Feed • Beef – Age at Slaughter • Anaerobic Digestors • Pork – Manure and Feeding • Tillage • Energy Efficiency • Energy Efficiency • Waste Heat Recovery • Buildings (Residential and Industrial/Commercial) • Forestry • Afforestation • Forest Management (CCAR) • Fossil Fuel Based Energy • Fuel Switching • Geological Sequestration • Acid Gas Injection • Enhanced Oil Recovery Prioritization Needed

  8. Current ActivitiesCoordinate through IPOG • Coordinate/facilitate through IPOG’s broad membership for the adaptation of all protocols in a timely manner • Industry Provincial Offset Group’s Role: • Kick-start Protocol Working Groups • Provide guidance on common look and interaction– support infrastructure and process • Provide forum for consistency – cross cutting issues (eg forestry vs tillage permanence) • Stakeholder outreach for process support; post documentation

  9. Subsequent Development of Protocols • Parallel opportunity to seed next round of protocoldevelopment • Quarterly revisions to protocol development timelines • Opportunity to continue coordination on project types • Protocols from Fast Track that are not taken forward • Additional project types that will yield offsets • Considerable additional guidance provided in draft Guide for Protocol Developers

  10. Presentation Outline • Canada’s Federal Approach • Canada’s Provincial Approach • In the Year 2020….

  11. Provincial Responses • British Columbia • Carbon tax effective July 1, 2008 • currently requesting offsets • member of Western Climate Initiative (WCI) • WCI participants include 9 western U.S. States and some Canadian provinces

  12. Provincial Responses • Alberta • legislation in effect requiring an intensity based reduction of 12% starting July 1, 2007 by firms emitting more than 100,000 tonnes of GHG’s/yr • compliance by internal reductions, $15/MT to tech fund, and offsets

  13. Alberta Offsets • credit from January 1, 2002 • real, demonstrable, quantifiable • verification by third party • occur in Alberta • action to produce offset was not required by law • clear ownership

  14. Alberta Protocols • A protocol is a defined method ensuring a credit is created meeting the criteria listed before. • Types available (afforestation, beef feeding, beef lifecycle, biofuels, compost, energy efficiency, landfill gas, pork, tillage, waste heat recovery) • future protocols possible (N use efficiency, wetlands mgt., conversion to perennial forages, rangeland mgt.)

  15. Tillage Protocol Example

  16. Tillage Protocol Example • Each soil zone has its own values based on soil type and management regime. • Farmers approached by aggregators to “aggregate” enough credits to sell into the market place. • For Alberta, soil tillage credits were 47% of the compliance under the offsets option.

  17. Provincial Responses • Manitoba • WCI and Midwest Governor’s Accord participation

  18. Provincial Responses • Ontario • Newest member of WCI • MOU with Quebec • Absolute reductions • Coal fired electricity plants gone by 2014 • Standard offer contracts (credits?) • Currently exploring ag credits with pilots

  19. Provincial Responses • Quebec • Member of WCI • MOU with Ontario • Carbon Tax

  20. Western Climate Initiative • Will include an offsets system • No more than 49% of total emission reductions from 2012-2020 • Must be real, additional, verifiable and permanent • Priority to investigate (protocol dev. 2009) • Agriculture (soil sequestration & manure mgt) • Forestry • Waste management

  21. Western Climate Initiative • All accepted WCI offsets are of equivalent use and fungible throughout the region • WCI will be designed to be stand alone or allow integration into USA and Canada national programs

  22. Soil Carbon Offsets • Soil carbon as an offset is recognized across compliance systems (Alberta, Canada, WCI (7 states, 4 provinces)) • Further expansion across the global market is necessary • AND IT IS OUR JOB!

  23. Presentation Outline • Canada’s Federal Approach • Canada’s Provincial Approach • In the Year 2020….

  24. Federal Trading and Price Projections -Demand and Supply

  25. Estimated Trading Volumes In Canada’s System* * Analysis prepared by ICF Consulting for Environment Canada

  26. Environment Canada Offset Projections (Mar ’08)

  27. Federal Price Projections -Mike Beale, Environment Canada April 2008

  28. Emission Reductions Adoption of technology and management that reduce GHG emissions Permanent in nature Emission Removals Carbon Sinks Created and maintained by management Not permanent, but reversible (handled in current protocols) Canadian Agriculture10% the Problem, 20% the solution!Two Solutions

  29. The Canadian Biosphere

  30. CO2 (N2O,CH4) REDUCE CH4 & N2O associated with biosphere management SEQUESTER Atmospheric C & solar energy into biomass. Biomass Fossil Fuels ADAPT biosphere to changing climate & atmosphere COMPLEMENT fossil energy (& chemicals, materials) with biomass … … the improved management and use of our biological cycles to provide environmental values, energy, chemicals and materials (the Bioeconomy) in addition to food, feed and fibre. Capturing Canada’s Green Advantage: Biosphere Solutions

  31. CO2 (N2O,CH4) REDUCE CH4 & N2O associated with biosphere management SEQUESTER Atmospheric C & solar energy into biomass. Biomass Fossil Fuels ADAPT biosphere to changing climate & atmosphere COMPLEMENT fossil energy (& chemicals, materials) with biomass … … the improved management and use of our biological cycles to provide environmental values, energy, chemicals and materials (the Bioeconomy) in addition to food, feed and fibre. Capturing “The World’s” Green Advantage: Biosphere Solutions

  32. Thank you Questions? Don McCabe don.mccabe@ofa.on.ca

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