On June 29, 2008 the federal government released details concerning its Credit for Early Action Program. This program will provide a one-time allocation of carbon credits to companies that voluntarily reduced greenhouse gas (GHG) emissions between 1992 and 2006.
Early action credits may be used by regulated entities to meet a portion of their future compliance obligations under the Federal Government’s proposed regulatory regime for GHG emissions.
The Credit for Early Action Program will distribute credits equal to 15 megatonnes (Mt) of carbon dioxide equivalent (CO2e) emissions, of which a maximum of 5 Mt may be allocated for use in each of 2010, 2011 and 2012. The allocation will not be based on regional or sectoral considerations.
Urgent Action Required!
Potential applicants must take immediate action. Final applications under the Credit for Early Action Program will not be considered unless an applicant submits an initial Notice of Interest by July 28, 2008.
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All of the following six criteria must be satisfied for an action to be eligible under the Credit for Early Action Program:
- The action reduced emissions of carbon dioxide (CO2), methane (CH4), nitrous oxide (N20), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF6).
- The action occurred in a single facility.
- For specified industries (chemicals, fertilizers, natural gas pipelines, upstream oil and gas and electricity) the facility meets minimum size thresholds.
- The action resulted in initial GHG reductions that occurred in 1992 or later, and these reductions continued through December 31, 2006.
- The GHG reductions from the action have not already received credit under a mandatory or voluntary GHG emissions reduction program.
- The action was incremental (i.e. surplus to legal requirements, beyond standard improvements expected in the industry, and not funded by governmental climate change incentives).
A reduction of GHG emissions will not be eligible if it resulted from:
- reductions in production or shutdowns
- actions taken outside the facility
- actions that moved production activities offsite (some exceptions apply)
- the capture and sequestering, moving offsite or selling to another facility of GHG emissions
- energy efficiency improvements that reduced the emissions of another facility
- reductions in emissions from a fixed process
- reductions in fugitive emissions.
Information on the Credit for Early Action Program can be found here.