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Canada moves to implement emissions trading

- Thursday, June 11, 2009

The Canadian Government has announced plans to establish a national carbon market, which is anticipated to commence trading from January, 2011. Up until the present time, greenhouse emission mitigation efforts in Canada have been at a Provincial rather than a national level.

The proposed Canadian market will be based on an Emissions Trading Scheme that requires large emitters to participate and to cap their net emissions. These large emitters will be able to purchase emission offsets arising from accredited emission offset projects undertaken by businesses. Among the recognised offset projects will be forestry developments and actions by farmers that result in additional carbon being retained in the soil.

The discussion paper released by the Canadian government states that

Agriculture sink projects could include the following types of land management practices:
    ·  reducing the intensity of tillage operations;
    ·  adopting crop rotations and grazing management practices that sequester more carbon in the soil; or
    ·  increasing the use of permanent cover.
Other types of biological sink projects are also possible.”

It is not proposed that agriculture would be a ‘covered sector’ and that as a result farmers would have to pay a cost for farm emissions under the Canadian ETS.

 
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