BC government has established regulated carbon offset market
VANCOUVER, BC - Offsetters Climate Solutions is pleased to announce that the Provincial Government of British Columbia has tabled their Greenhouse Gas Industrial Reporting and Control Act (the "Act").
This Act establishes a greenhouse gas benchmark for LNG (liquefied natural gas) companies wishing to operate LNG processing facilities within the province. By setting an emissions benchmark of 0.16 tonnes of carbon dioxide equivalent per tonne of LNG produced, the province hopes to establish the cleanest LNG facilities in the world. Carbon offsets will play an important role in achieving this goal, creating a significant new market opportunity for Offsetters.
In order to help LNG companies meet these emissions requirements, the Act will allow LNG facilities to use three ‘flexibility mechanisms’ to achieve reductions – carbon offsets, payments into a technology fund, or credits from facilities that operate below the 0.16 benchmark. The Act does not elaborate on detailed attributes of each of these mechanisms, but it does indicate that LNG facilities will be allowed to buy carbon offsets from projects within British Columbia, or pay a fee of $25 per tonne of carbon emissions in excess of the benchmark into a technology fund, or buy ‘credits’ from other facilities which have been operating below the 0.16 threshold (and thus, have received ‘credit’ for bettering the benchmark level). Specific regulations further defining each of these flexibility mechanisms are in the process of being drafted, and should be made available to LNG proponents and the general public for consultation over the coming months.
At this time, the Act does not regulate greenhouse gas emissions beyond those at the processing facility. Emissions from upstream sources, which include everything from the wellhead, through the pipelines, compressors and pneumatic controllers, are yet to be addressed. As a significant source of potential future emissions, the government has acknowledged that the Ministry of Natural Gas Development is creating additional policies and programs to address these emissions.
“We are pleased to see the provincial government table policy that begins to address part of the environmental impact that will occur with LNG development. This Act establishes a legitimate market for carbon offsets within the province, and will drive significant investment into greenhouse gas reduction projects across a number of sectors,” commented Dr. James Tansey, CEO of Offsetters. “As the leading carbon project developer in BC, we are well positioned to supply this market with high quality carbon offsets and specialized technical services related to their development and verification. We look forward to working with the province, First Nations, industry and the private sector to ensure this market operates with the highest environmental integrity.”
About Offsetters Climate Solutions Inc.
Offsetters is Canada’s largest and most diversified carbon management solutions company. Its team of industry leaders specializes in the origination, development and commercialization of high-quality carbon offset projects, and through a comprehensive offering of sustainability consultancy services Offsetters helps organizations understand, reduce and offset their climate impact. A merger of ERA Carbon Offsets and Offsetters, Offsetters is based in Vancouver, Canada and has worked with over 150 of the world’s most prestigious organizations including Aimia, Vancity, lululemon athletica, Catalyst Paper, Harbour Air, HSE – Entega, and Shell Canada Limited. Offsetters is publicly listed company on the Toronto Venture Exchange (TSX-V:COO) and in Frankfurt:9EA.