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A Primer on Carbon Pricing and Carbon Border Adjustments

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Ahead of the April U.S. climate summit, several advanced economies, including the U.S., the UK, Canada, Japan, and the EU, announced more aggressive interim emissions reduction targets on the way to net zero by 2050. For instance, the U.S. lifted its target to 50-52% below 2005 levels by 2030, from a previous commitment of 26-28% by 2025. Canada followed suit citing a 40-45% emissions reduction target by 2030, from 36% previously. The commitment is clear within the advanced world, but now the focus is on what package of policies is required for the respective governments to reach these targets.
Carbon pricing has been at the center of these discussions for some time and is rising in popularity due to its incentive framework and ease of implementation. And now, a new kid is on the block. A debate is growing over the adoption of carbon border adjustments – levies that would be applied to imports from countries that do not price carbon. This policy framework i ....

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Criticism of carbon offsets doesn't acknowledge changes to how projects are approved, monitored

Criticism of carbon offsets doesn't acknowledge changes to how projects are approved, monitored
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Canada Proposing National Cap-and-Trade Market for GHG Emissions

Canada Proposing National Cap-and-Trade Market for GHG Emissions
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Canada Issues Proposed Federal Greenhouse Gas (GHG) Offset Regulations - Environment

Enhanced Soil Organic Carbon
The federal offset protocols are only intended to apply in those
Canadian provinces and territories that do not address the same
project activity through an existing regional offset program. Since
the Minister is expected to recognize many of the common offset
regimes currently enacted by provinces and territories (including
those dealing with the production of renewable energy from wind or
solar), it makes sense for the federal government to concentrate on
finalizing these less common protocols.
b. Application Criteria
A project description, including location, start date, BAU and
project scenarios
An estimate of the total GHG reductions to be achieved by the ....

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Government of Canada announces next step in creation of domestic carbon offset to further support clean growth

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GATINEAU, QC, March 5, 2021 /CNW/ - The Minister of Environment and Climate Change, the Honourable Jonathan Wilkinson, today announced draft regulations to establish the Federal Greenhouse Gas Offset System to reduce carbon emissions and create jobs.
The Federal Greenhouse Gas Offset System is a market-based approach that will spur innovation and private-sector investment in economic activities that lead to further emissions reductions. It will also help Canadian industry remain competitive.
Federal Greenhouse Gas Offset System – Proposed Regulations (CNW Group/Environment and Climate Change Canada)
The system will support a domestic carbon trading market under Canada s carbon price for industry – the Output-Based Pricing System (OBPS) – under which regulated facilities who exceed their emission limits can provide compensation by purchasing federal offset credits – an additional lower-cost option – generated from ....

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