Greenhouse Gas Reduction Targets Act (GGRTA)

Emission Offsets Regulation - Offsets Project Process Summary

NOTES:

1. Standard validation period is from project start date until ten years following validation date.
2. Transition period provision allows for forward contracting with proponents at this stage for delivery of verified project reductions by December 31st, 2012.
3. Steps 3 - 5 can be repeated as often as is economic for a project proponent that is generating GHG reductions.

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.

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.

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.

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 offsets.

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.

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.

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 include an assessment of the project's greenhouse gas reduction, data collection, monitoring, and calculations.

Initially a team which includes a person authorized to act as an auditor of a company and at least one qualified professional (as defined in the regulation) will be able to act as a validation or verification body. As of July 1, 2010 validation and verification bodies will need to be accredited, in accordance with ISO 14065, by a member of the International Accreditation Forum to use ISO 14064-3.

Please contact the Pacific Carbon Trust.