11/08/2005 - The Government
of Canada took another step to honour our
Kyoto commitment today, proposing a set of
rules for a domestic offset credit system,
which will reward innovation and provide incentives
to reduce greenhouse gas (GHG) emissions.
As promised under Moving Forward on Climate
Change: A Plan to Honour Our Kyoto Commitment,
the Government today issued a consultation
paper setting out the system’s proposed rules.
Following consultations with provinces, territories,
industry and Aboriginal groups, the system
will begin operating early in 2006. Other
public comments on the consultation document
are invited until September 30, 2005.
“Enacting this system is a major step forward
for our climate change plan,” said the Honourable
Stéphane Dion, Minister of the Environment.
“Consultations will maximize its effectiveness
in directing innovation to reduce greenhouse
gas emissions for cleaner air, a healthier
environment and a strong, sustainable, competitive
economy.”
The proposed system will encourage innovative
Canadian projects that use new practices and
technologies to reduce greenhouse gas emissions.
Examples include:
• property developers that include renewable
energy elements in their plans for new subdivisions;
• farmers who adopt low-till practices or
zero-till practices;
• forestry companies that engage in state-of-the-art
forest management practices;
• businesses that develop innovative ways
to reduce emissions through recycling and
energy efficiency;
• municipalities that invest in alternative
transportation modes or capture landfill gas
to generate electricity; and
• companies who implement programs encouraging
their employees to use public transit or tele-commute.
Companies, governments, organizations or citizens
undertaking such projects – provided they
meet the criteria to be finalized following
consultations – will be awarded credits. In
turn, these credits may be sold to:
• Canadian companies in the Large Final Emitters
category to put towards their emission reduction
targets;
• the Climate Fund, a new institution established
by Budget 2005 to purchase credits on behalf
of the Government of Canada; or
• another interested individual or organization.
As a key part of the Canada climate change
plan, the Offset System represents further
progress under Project Green, a set of policies
and programs aimed at supporting a sustainable
environment and a more competitive economy.
Along with climate change, it will address
a range of environmental issues, including
biodiversity, water, contaminated sites and
clean air. Project Green's groundwork was
established by the October 2004 Speech from
the Throne and Budget 2005. Moving Forward
on Climate Change: A Plan for Honouring our
Kyoto Commitment, is Project Green's first
instalment. Visit www.climatechange.gc.ca
