can generate The offset scheme The gradually ‘Offset bankable and covers electricity Protocol introduced tradable generation, Development over a period agriculture, energy Guidance’ of up to six efficiency, forestry, document years. performance geological outlines credits’. Those sequestration, integrity For offset that do not methane/waste standards for projects, the meet their management, additionality, baseline targets can use renewable energy, including represents any transportation, regulatory combination of biofuels and some and financial emissions. the following industrial activities. tests, compliance available Offset options: The offset scheme technology baselines can specifies that tests, and a be specified as purchase project-based common historic practice test emission emission benchmark, reductions/removals in which performance credits must: common standard, from other practice is comparison entities occur in defined as a approach, 40 per cent purchase be additional to offset regulations, and level of or credits adoption of be beyond adjusted the activity purchase baselines. fund credits and sector in the sector. Baselines can (penalty). common also be static practices Alberta also or dynamic. The price be from actions uses a ceiling on the taken on or after discount Methodologies fund credit 1 January 2002 factor in are subject to some penalty is $15 be real, periodic per tonne demonstrable, sequestration review. New CO2-e. quantifiable and projects to projects must verifiable help ensure use the current The offsets have clearly additionality; methodology. for instance, component is a established Where voluntary ownership tillage revisions be counted once projects market based occur, active compliance for compliance apply a projects will option purposes discount of be allowed to 10 per cent available to use a finish the liable entities. on credits to current hedge Offset credits crediting against can be methodology period unless generated by future the project reversal risk. facilities and
can generate bankable and tradable performance credits’. Those that do not meet their targets can use any combination of the following compliance options: purchase emission credits from other entities purchase offset credits purchase fund credits (penalty). The price ceiling on the fund credit penalty is $15 per tonne CO2-e. The offsets component is a voluntary market based compliance option available to liable entities. Offset credits can be generated by facilities and The offset scheme covers electricity generation, agriculture, energy efficiency, forestry, geological sequestration, methane/waste management, renewable energy, transportation, biofuels and some industrial activities. The offset scheme specifies that project-based emission reductions/removals must: occur in be additional to regulations, and be beyond and sector common practices be from actions taken on or after 1 January 2002 be real, demonstrable, quantifiable and verifiable have clearly established ownership be counted once for compliance purposes use a methodology The ‘Offset Protocol Development Guidance’ document outlines integrity standards for additionality, including regulatory and financial tests, available technology tests, and a common practice test in which common practice is defined as a 40 per cent level of adoption of the activity in the sector. Alberta also uses a discount factor in some sequestration projects to help ensure additionality; for instance, tillage projects apply a discount of 10 per cent on credits to hedge against future reversal risk. gradually introduced over a period of up to six years. For offset projects, the baseline represents emissions. Offset baselines can be specified as historic benchmark, performance standard, comparison approach, or adjusted baselines. Baselines can also be static or dynamic. Methodologies are subject to periodic review. New projects must use the current methodology. Where revisions occur, active projects will be allowed to finish the current crediting period unless the project