Policy status:Planned
Date Effective:2006
Policy Type:Policy Support, Economic Instruments>Market-based instruments>GHG emissions trading
Policy Target:Industry, Energy Sector
Agency:Environment Canada
Description:The proposed Canadian emissions trading scheme is a baseline-and-credit system. The government proposes intensity-based targets that will come into force in 2010, which may lead to absolute reductions in emissions of greenhouse gases from industry by 2020, based on 2007 growth forecasts (see below on emissions intensity). Brief details of the proposed scheme follow. It will not operate in a vacuum. The Federal government has proposed additional measures be adopted that will complement the operation of the scheme. Amongst these measures are: The mandatory use of carbon capture and storage technology for new facilities in oil sands and power generation sectors and the encouragement of retrofitting this technology where appropriate. The establishment of a Technology Fund to invest in qualifying GHG emissions reduction projects. Development of cleaner power sources, mainly through additional hydroelectric and nuclear power stations and the advanced retirement of coal fired power stations. The Federal GHG Emissions Offsets scheme, where sectors not formally covered by the proposed emissions trading scheme may undertake projects that remove or reduce GHG emissions and generate emissions credits. These credits are later sold to scheme participants. The generated credits must meet a number of criteria to be accepted. For example, the waste sector is a notable exemption for the proposed emissions trading scheme. Firms or facilities in this sector may undertake projects for the collection of methane from waste dumps and use it to generate electricity. Projects of this type would generate an emissions credit under the Offsets Scheme that could later be sold to scheme participants.

Last modified: Wed, 18 Jul 2012 17:00:49 CEST