To extend the carbon pollution price signal by implementing a federal GHG offset credit system (a federal offset system) and incentivizing activities that lead to GHG reductions that are not required under existing regulations or covered by other measures related to carbon pollution pricing
Who are the Offsets for?
- Fed Draft Offsets Regs apply for use of offsets by large industries under the federal backstop (rate based) cap & trade system. (Output Based Performance System – OBPS – for large industries).
- That doesn’t mean that other non OBPS entities can’t also purchase offsets (because they can) but simply that this is the protocol that will guide the rules for offset use by those entities.
Why Municipalities Should Care?
- Because it sets the framework for what kind of offsets will be eligible and how much of their cap can be achieved via offsets
- It will also impact how much a role municipal projects can play in being eligible for offsets (keep in mind that if they are sold as offsets they cannot be applied to municipal GHG targets but the offsets may be able to play a role in getting projects happening that would not have the financials to get them implemented without offsets)
- We are developing a Clean Air Council submission to join this working group to develop the draft please send an email to email@example.com