Preventing double-counting of carbon credits
Canada Gazette, Part I, Volume 158, Number 45: Regulations Amending the Output-Based Pricing System Regulations
This proposed amendment to the Output‑Based Pricing System Regulations would ensure a single greenhouse‑gas reduction (one CO2e tonne) can yield no more than one credit or unit and clarify when credits become valid for federal compliance remittance. The public comment period is open for 60 days from publication.
- Published
- November 9, 2024
- Department
- Unavailable
- Section
- REGULATORY IMPACT ANALYSIS STATEMENT
- Comment deadline
- January 8, 2025
- Effective date
- Unavailable
- Publication part
- Part I
Summary
Summary#
This notice proposes changes to the Output-Based Pricing System Regulations under the Greenhouse Gas Pollution Pricing Act. The goal is to stop a single greenhouse-gas reduction from being counted more than once and to clarify when credits become valid for compliance. The proposal is from the Department of the Environment and is open for public comment for 60 days from publication (November 9, 2024), with comments due by January 8, 2025.
What it does#
- Clarifies when a credit or unit is considered retired or becomes a compliance unit for remitting under the federal system.
- Requires systems and rules so that a greenhouse-gas reduction or removal of one CO2e tonne can generate no more than one credit or unit.
- Adds a requirement to make sure a credit or unit issued under a provincial or program scheme is not used by more than one person.
- Clarifies that a unit or credit must be designated by the province or program authority that issued it before it can be used as a compliance unit for remittance to the federal Minister.
- Says the amendment would come into force on the day it is registered (no specific start date given here).
Who's affected#
- Industrial facilities covered by the Output-Based Pricing System and other groups that need to surrender compliance units.
- Provincial governments and other program authorities that issue credits or units.
- Organizations and people who create, hold, trade, or use credits or compliance units under provincial programs.
- Regulators and compliance staff who track, verify, and accept credits for remittance.
Why it matters#
- It aims to protect the integrity of carbon credits by reducing the risk of double-counting or double-use.
- That can make provincial credit programs more reliable for companies that must meet federal pollution-price obligations.
- Provinces and credit issuers may need to adjust tracking, designation, or verification practices.
- This is a proposal, not final law. Interested parties can comment until January 8, 2025.
Key topics
Source: Canada Gazette