Emission Offsets Regulation
Frequently Asked Questions
1. What is the process for validating projects, verifying reductions, and having reductions verified as offsets?
2. How do I know if my project is eligible?
3. Can local governments create offsets for the Pacific Carbon Trust (PCT)?
4. Can a Public Sector Organisation (PSO), as defined in the Carbon Neutral Government Regulation, create offsets for the Pacific Carbon Trust?
5. What kind of additionality is required by the Emission Offsets Regulation? How do I know if my project is additional?
6. How do I quantify my proposed offset project?
7. How long are offset projects valid?
8. Who are validation and verification bodies?
9. The accreditation requirements for verification bodies appear to be different for the Emission Offsets Regulation and the Reporting Regulation. Is this the case, and if so, why?
10. Who do I talk to if I want to sell offsets?
1. What is the process for validating projects, verifying reductions, and having reductions verified as offsets?
Emission Offsets Regulation - Offsets Project Process Summary
NOTES:
- Standard validation period is from project start date until ten years following validation date.
- Transition period provision allows for forward contracting with proponents at this stage for delivery of verified project reductions by December 31st, 2012.
- Steps 3 - 5 can be repeated as often as is economic for a project proponent that is generating GHG reductions.
2. How do I know if my project is eligible?
Review your project against the eligibility criteria (real, measurable, additional, verifiable, counted once, clear ownership). If it appears to meet all of the criteria, it is a likely offsets project candidate. Generally speaking, the most involved criterion to review and establish is additionality. See FAQ #5.
3. Can local governments create offsets for the Pacific Carbon Trust (PCT)?
Local governments that have taken on a carbon neutral compliance obligation on their operations cannot claim offset projects related to their operations and sell the reductions to the PCT. This restriction would not apply to some other potential community-based offset project that doesn't fall within the scope of the carbon neutral pledge.
If a government has committed to carbon neutrality it does not make sense to sell reductions in greenhouse gas emissions from operations as offsets. Selling the rights to the greenhouse gas reduction would result in the entity's greenhouse gas inventory increasing by the same amount. This increase in its inventory would then need to be offset to achieve carbon neutrality. NB - if an entity counted the greenhouse gas reduction (or removal) in its inventory and sold that reduction as an offset, the 'counted once' criterion would be violated.
4. Can a Public Sector Organisation (PSO), as defined in the Carbon Neutral Government Regulation, create offsets for the Pacific Carbon Trust?
As of 2010, it would not make sense for a PSO to sell reductions as offsets. Selling the right to the greenhouse gas reduction would result in the entity's greenhouse gas inventory increasing by the same amount. This increase in its inventory would then need to be offset to achieve carbon neutrality. NB - if an entity counted the greenhouse gas reduction (or removal) in its inventory and sold that reduction as an offset, the 'counted once' criterion would be violated.
5. What kind of additionality is required by the Emission Offsets Regulation? How do I know if my project is additional?
Projects must meet the following additionality criteria (see regulation for exact wording):
- Baseline scenario must comply with relevant regulations.
- Baseline scenario incorporates all relevant incentives and grants.
- Financial implications of the baseline scenario suggest it would occur if the project is not carried out.
- The project faces financial, technological, or other barriers that are overcome, or partially overcome by the incentive of the reduction being recognized as emission offset.
6. How do I quantify my proposed offset project?
Proponents are encouraged to select a recognized protocol (for example, the Clean Development Mechanism (CDM) has numerous expert and publicly reviewed methodologies) and adapt, as necessary, to the B.C. context.
Over time, an optional list of approved protocols will be developed and made available to project proponents.
In addition, the Director of the Climate Change Branch of the Ministry of Environment has the authority to designate mandatory protocols. These protocols may relate to any of the following:
- Selection of sources, sinks, or reservoirs.
- Baseline scenarios.
- Quantification of Greenhouse Gas Reductions.
- Monitoring Greenhouse Gas sources, sinks, and reservoirs.
7. How long are offset projects valid?
Offset project validations will expire ten years after the date of the statement of assurance unless otherwise ordered by the Director of the Climate Change Branch of the Ministry of Environment. It is anticipated, for example, that longer validation periods will be ordered for forestry projects to reflect the nature of this class of projects.
8. Who are validation and verification bodies?
Validation bodies review project plans and issue assurance statements on the basis of their findings. The validation of a project plan includes an assessment of the project's additionality, selection of sources, sinks, reservoirs, and the protocol selected by the proponent.
Verification bodies assess project reports and issue assurance statements on the basis of their findings. The verification of project reports includes an assessment of the project's greenhouse gas reduction, data collection, monitoring, and calculations.
9. The accreditation requirements for verification bodies appear to be different for the Emission Offsets Regulation and the Reporting Regulation. Is this the case, and if so, why?
The accreditation requirements for assurance providers under the Emission Offsets Regulation and the Reporting Regulation are not identical. A detailed explanation of the requirements and rationale is provided below:
Reporting Regulation under the Greenhouse Gas Reduction (Cap and Trade) Act
The Reporting Regulation continues to require a verification body to be accredited by a member of the International Accreditation Forum (IAF) in accordance with ISO 14065 through a program developed under ISO 17011. Standards Council of Canada (SCC) and the American National Standards Institute (ANSI) are members of the IAF and run such programs. For verifications that are completed prior to December 31, 2012, verification bodies may be accredited by the California Air Resources Board under specified California regulations.
The Reporting Regulation requires that verification bodies have their accreditation in place to provide services under the regulation. However, it does not stipulate that the accreditation is specific to the industry sectoral scope. Nevertheless, verification activities must be conducted in accordance with ISO 14064-3, which indicates that verifiers must demonstrate necessary relevant competence. The preference of the ministry is that accredited verification bodies providing verification services within sectoral scopes for which they have not yet received accreditation conduct verifications as part of a scope extension witness assessment.
Emission Offsets Regulation under the Greenhouse Gas Reduction Targets Act
The Emission Offsets Regulation amendment, which came into force on December 6, 2010, requires that the body be accredited (or enrolled in a program for accreditation) in the sectoral scope of the project by a member of the International Accreditation Forum (IAF) in accordance with ISO 14065 through a program developed under ISO 17011. An enrolled validation or verification body may conduct work for a maximum period of one year from the date of their earliest signed assurance statement in a given sectoral scope. Following this period the body will require full accreditation to conduct assurance work in that sectoral scope. The Director maintains an ability to make determinations regarding the qualifications and quality of work of an enrolled validation body or verification body.
Rationale
Providing assurance services for reported facility emissions is considered a separate activity from providing assurance services for an offsets project, and oversight of these activities falls under different provincial legislation. SCC and ANSI confer separate accreditations for verification of GHG inventories, verification of GHG projects, and validation of GHG projects.
The market for emissions report verification is sizable and known (BC has at least 75 single site and linear facilities operations requiring annual verification), while the demand for offset project validation and verification is not as well defined. Given that the Reporting Regulation allows verification bodies accredited by the California program and does not place limits on sectoral scope accreditation, the Ministry expects there to be a sufficient capacity of verification bodies to provide services under the Reporting Regulation.
10. Who do I talk to if I want to sell offsets?
Please contact the Pacific Carbon Trust.
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