Here is a recent update our members received with regards to British Columbia’s first take at carbon credits.
On May 28th, the B.C. government introduced a key component of its plan to reduce greehouse gas emissions by one-third by the year 2020. Bill 18 establishes a framework for a cap-and-trade system for greenhouse gas emissions; however, specific reduction targets have yet to be set.
The B.C. government can now issue a given number of allowance units (BCAUs) to affected companies that each represent one tonne of CO2 equivalent emissions. If a company wishes to surpass its emissions cap, it is possible to purchase additional units from other companies who have additional BCAUs at the end of a compliance period (which will be determined by regulation).
Companies may also acquire BC Emission Reduction Units (BCERUs), which are issued by the government if a company can demonstrate removal, reduction or avoidance of GHG emissions into the atmosphere. Companies can also purchase Recognized Compliance Units (RCUs) from other jurisdictions (if approved by regulation). Companies may be forced to pay administrative penalties in the case of non-compliance.
