GOVERNMENT OF CANADA MOVES TO CREATE A MARKET FOR EMISSION REDUCTIONS IN ALL SECTORS OF THE ECONOMY

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