Country:Canada
Year:2005
Policy status:Superseded
Jurisdiction:International
Date Effective:2005
Policy Type:Economic Instruments>Fiscal/financial incentives, Policy Support, Regulatory Instruments, Economic Instruments>Market-based instruments>GHG emissions trading
Policy Target:Framework/ Multi-sectoral Policy
Agency:Canada Emission Reduction Incentives Agency
URL:http://www.parl.gc.ca/38/1/parlbus/chambus/house/bills/government/C-43/C-43_4/C-43-8E.html
Funding:CAD 1 billion
Description:Introduced in Canadas Green Budget 2005 and central to Canadas Climate Change Plan 2005, the Climate Fund was an institution to purchase, on behalf of the federal government, greenhouse gas reduction and removal credits generated in Canada and abroad. With an initial capitalization of CAD1 billion, the Climate Fund represented one of the primary tools in the Government of Canada’s approach to honouring its short-term commitments under the Kyoto Protocol. The Canada Emission Reduction Incentives Agency purchase programme required a competitive procurement process to promote the cost-effective sourcing of GHG reduction and removal credits while integrating climate change considerations into the economic decision-making of businesses and individuals. Domestic Purchases The Climate Funds primary mandate was to promote GHG reductions and removals in Canada. It did so by purchasing emissions reduction or removal credits generated by Canadas Offsets System for GHG Emissions. The Climate Fund could also have made advance payments for these credits when they were generated by a large strategic project developed in partnership with the private sector. The federal government planned to favour offsets generated by Canadian farmers, forestry firms, municipalities and Large Final Emitters exceeding their stated emissions reduction targets. International Purchases The Climate Fund was to purchase credits generated by Kyoto Parties around the world by the Kyoto Protocols three market mechanisms. In particular, purchases of Assigned Amount Units from Central and Eastern Europe would be "greened" through a requirement that the seller reinvest 100% of the proceeds from the sale in projects and activities that contributed to reductions in GHG emissions.

Last modified: Wed, 18 Jul 2012 15:40:17 CEST