Canada Carbon Offset Policy
Conservation Agriculture Carbon Offset
Consultation
October 30, 2008
Don McCabe
Soil Conservation Council of Canada
Presentation Outline
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Canada’s Federal Approach
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Canada’s Provincial Approach
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In the Year 2020….
Canadian government prescription
for dealing with emissions
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“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
Canadian government prescription
for dealing with emissions
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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
Federal Government
Messaging
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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…”
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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
Eligible Project Types
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Agricultural
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Energy Efficiency
Waste Heat Recovery
Buildings (Residential and
Industrial/Commercial)
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Acid Gas Injection
Enhanced Oil Recovery
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Road Rehabilitation
Modal Shifting
Waste Management
Fuel Switching
Geological Sequestration
Wind, Solar, Small Hydro
Biomass to Energy
District Heating
Transportation
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Afforestation
Forest Management (CCAR)
Landfill Gas
Coal Bed/Mine/Ventilation Methane
Composting
Aerobic Landfill Bioreactor
Wastewater Treatment
Renewable Energy
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Fossil Fuel Based Energy
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Methane Management
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Forestry
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Beef Feeding – Edible Oils
Beef – Days on Feed
Beef – Age at Slaughter
Anaerobic Digestors
Pork – Manure and Feeding
Tillage
Energy Efficiency
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Other
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Prioritization Needed
Reusing flared well gas
Non-incineration thermal waste
management
N2O abatement
Biofuels
Eligible Project Types
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Agricultural
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Energy Efficiency
Waste Heat Recovery
Buildings (Residential and
Industrial/Commercial)
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Acid Gas Injection
Enhanced Oil Recovery
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Road Rehabilitation
Modal Shifting
Waste Management
Fuel Switching
Geological Sequestration
Wind, Solar, Small Hydro
Biomass to Energy
District Heating
Transportation
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Afforestation
Forest Management (CCAR)
Landfill Gas
Coal Bed/Mine/Ventilation Methane
Composting
Aerobic Landfill Bioreactor
Wastewater Treatment
Renewable Energy
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Fossil Fuel Based Energy
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Methane Management
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Forestry
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Beef Feeding – Edible Oils
Beef – Days on Feed
Beef – Age at Slaughter
Anaerobic Digestors
Pork – Manure and Feeding
Tillage
Energy Efficiency
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Other
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Prioritization Needed
Reusing flared well gas
Non-incineration thermal waste
management
N2O abatement
Biofuels
Current Activities
Coordinate through IPOG
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Coordinate/facilitate through IPOG’s broad
membership for the adaptation of all protocols
in a timely manner
Industry Provincial Offset Group’s Role:
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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
Subsequent Development of
Protocols
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Parallel opportunity to seed next round of protocol
development
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Opportunity to continue coordination on project types
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Quarterly revisions to protocol development timelines
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
Presentation Outline

Canada’s Federal Approach

Canada’s Provincial Approach
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In the Year 2020….
Provincial Responses
British Columbia
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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
Provincial Responses
Alberta
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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
Alberta Offsets
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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
Alberta Protocols
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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.)
Tillage Protocol Example
Tillage Protocol Example
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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.
Provincial Responses
Manitoba
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WCI and Midwest Governor’s Accord
participation
Provincial Responses
Ontario
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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
Provincial Responses
Quebec
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Member of WCI
MOU with Ontario
Carbon Tax
Western Climate Initiative
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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)
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Agriculture (soil sequestration & manure mgt)
Forestry
Waste management
Western Climate Initiative
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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
Soil Carbon Offsets
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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!
Presentation Outline
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Canada’s Federal Approach
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Canada’s Provincial Approach
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In the Year 2020….
Federal Trading and Price
Projections -Demand and
Supply
Estimated Trading Volumes In Canada’s System*
160
140
120
100
Other Options
80
Cers
60
Tech Fund
40
20
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
0
* Analysis prepared by ICF Consulting for Environment Canada
Environment Canada Offset
Projections (Mar ’08)
Federal Price Projections
70
60
$/tonne
50
40
30
20
10
0
2010
2012
2014
2016
2018
Marginal Emissions Price
-Mike Beale, Environment Canada April 2008
2020
Canadian Agriculture
10% the Problem, 20% the solution!
Two Solutions
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Emission Reductions
Adoption of
technology and
management that
reduce GHG
emissions
Permanent in nature
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Emission Removals
Carbon Sinks
Created and
maintained by
management
Not permanent, but
reversible (handled
in current protocols)
The Canadian Biosphere
Capturing Canada’s Green
Advantage: Biosphere Solutions
… 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.
SEQUESTER
Atmospheric C
& solar energy
into biomass.
ADAPT
biosphere to
changing climate
& atmosphere
CO2
(N2O, CH4)
Biomass
Fossil Fuels
…
REDUCE CH4 &
N2O associated
with biosphere
management
COMPLEMENT
fossil energy (&
chemicals, materials)
with biomass
Capturing “The World’s” Green
Advantage: Biosphere Solutions
… 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.
SEQUESTER
Atmospheric C
& solar energy
into biomass.
ADAPT
biosphere to
changing climate
& atmosphere
CO2
(N2O, CH4)
Biomass
Fossil Fuels
…
REDUCE CH4 &
N2O associated
with biosphere
management
COMPLEMENT
fossil energy (&
chemicals, materials)
with biomass
Thank you
Questions?
Don McCabe
don.mccabe@ofa.on.ca