On Wednesday, Canada launched its Greenhouse Gas Offset Credit System to regulate the sale of carbon offsets under the national carbon pricing law. The program will allow registered parties to generate and sell verified carbon offset credits issued by Canada’s federal environmental agency, Environment and Climate Change Canada.

The draft regulations show the Department planning to manage a closely-monitored federal carbon offset marketplace that would allow participants to register greenhouse gas (GHG) emission reduction projects by submitting detailed applications verified by accredited third parties.

Canada’s department of the environment and climate change recently announced it is developing first phase federal carbon offset protocols for advanced refrigeration systems, forest management, landfill methane management, and “enhanced soil organic carbon” (presumably referring to what is commonly known as regenerative agriculture).

On September 21st, 2020, the Canadian federal government accepted Ontario’s Emission Performance Standard (EPS) program as an alternative to the federal output-based pricing system (OBPS) that’s been in effect in the province since January 1st, 2019. Both programs are cap and trade-type emission pricing regimes designed to incentivize industrial polluters (e.g., pulp and paper facilities, base metal smelting facilities, etc.) to lower greenhouse gas (GHG) emissions.