A carbon offset is defined as one tonne of CO2 equivalency being reduced from the atmosphere in a one year period. Carbon offsets are regulated by the Alberta government and require that specific conditions are met to originate or create an offset. This is done by way of a protocol which specifies what constitutes an offset and how they are to be managed and made available in the market.
Since Alberta is currently the only jurisdiction which has implemented a regulatory framework for originating and registering carbon offsets, large final emitters (e.g. – power generation companies, cement plants, large manufacturing facilities, etc. which emit 100,000 tonnes or more of CO2e) are allowed to purchase only those carbon offsets which were developed in the province. Large final emitters in Alberta are required by law to reduce their emissions by 12% for any amount over 100,000 tonnes of annual emissions. If the company cannot reduce by a full 12%, the difference results in a financial penalty – basically such companies are required to pay into a technology fund or purchase carbon offsets.
Carbon offsets helps companies participate in reducing emissions through the voluntary sector (the sector which is not required to comply but is able to reduce GHG emissions). This gives many companies the time needed to develop and implement new technological solutions such as carbon capture and storage or other technologies which reduce emissions.
ECI is active in the carbon offset industry and works with its customers to help them access funding from its Energy Rebate – Carbon Offset Program and facilitate the delivery of carbon offsets to large final emitters or other interested parties who are involved in emission reduction initiatives. Together with the voluntary sector and industry, overall emissions are reduced – ECI works to further cooperation and collaboration to this end. To learn more about ECI’s services in this regard, click on this link to take you to our SERVICES page.