Overview

Description

Canada’s GHG Offset Credit System was launched in June 2022 to provide an incentive to voluntarily implement projects that result in domestic GHG reductions and removals compared to business-as-usual practices. Federal offset credits can be used for compliance under the federal Output-Based Pricing System and under the Clean Electricity Regulations. In addition, federal offset credits can be used by other entities, including governments in Canada, companies, and municipalities, to meet voluntary climate targets or net zero goals, such as greening government operations and under initiatives like Canada’s Net Zero Challenge.

Recent Developments

Environment and Climate Change Canada (ECCC) published an offset protocol for The first federal offset credits were issued in June 2025. The first federal offset credits were remitted for compliance purposes under the federal OBPS, for the 2024 compliance year. For the period of March-April 2025, the draft Reducing Manure Methane Emissions federal offset protocol was published for public comment. When the final protocol is published (targeted for 2026), it will extend offset opportunities to agricultural operations. In October 2025, the final Reducing Enteric Methane Emissions from Beef Cattle (REME) federal offset protocol was published. As the first protocol in the agriculture sector, this was a key milestone in Canada’s GHG Offset Credit System. Additionally, ECCC announced in December 2025 that it plans to initiate the development of a Bioenergy with Carbon Dioxide Capture and Geological Storage (BECCS) protocol in winter 2026.Improved Forest Management on Private Land on May 6th, 2024 and an updated version (1.1) was released on October 15 2024. ECCC published a discussion paper entitled Facilitating Projects on Crown and Public Land in Canada’s Greenhouse Gas Offset Credit System. Feedback on this paper will help to inform how

Relation to Compliance Carbon Pricing Instruments or other Voluntary Schemes in the country

Canada’s federal Output-Based Pricing System Regulations and Clean Electricity Regulations

Eligible Activities