Friday, August 12, 2005

OTTAWA - The Government of Canada took another step to honour our Kyoto commitment, 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.

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.

Visit http://www.climatechange.gc.ca/ to download Moving Forward on Climate Change: A Plan to Honour Our Kyoto Commitment, as well as the offset credit system consultation documents.

For more information, please contact André Lamarre, Director of Communications, Office of the Minister of the Environment at (819) 997-1441