Federal Government’s Output Based Pricing System (OBPS) Framework, and Ontario’s Cap and Trade Program Related Activities

Bulletin date:
Bulletin number:
2018-09

Action required

None at this time.

 

Affected customers

Greenhouse Gas Validation and Verification Bodies

 

Background

As of January 2019, Canadian regulated facilities will be required to submit verified compliance reports, to the federal government in compliance with ISO 14065 and the Output Based Pricing System (OBPS) framework.  

 

SCC is working with ECCC’s Carbon Pricing Bureau to support the consultation activities with the jurisdictions, and anticipated implementation on January 1, 2019.  

 

SCC’s GHG accreditation program development and implementation services include, but is not limited to:

  • Providing information on GHG standards and imminent updates (ISO 14065, ISO 14064-1, ISO 14064-2, ISO 14064-3, and ISO 14066). 
  • Providing comment / feedback on proposed regulatory frameworks, with respect to the use of third-party verification bodies and annual compliance reporting and monitoring of GHG facility emissions.
  • Providing information on the Requirements for SCC`s Accreditation Program for Greenhouse Gas Validation/Verification Bodies as defined by ISO 14065:2013 - Greenhouse gases -- Requirements for greenhouse gas validation and verification bodies for use in accreditation or other forms of recognition
  • Assisting in building capacity through engagement with the authorities having jurisdiction and GHG validation / verification bodies (VVBs); building relationships and strategic support for implementation of the carbon pricing programs. 

 

Ontario, British Columbia, Quebec and most recently Nova Scotia have GHG schemes which mandate third-party accredited verifier requirements.  SCC currently has MoU agreements with two of the four provinces for GHG schemes, one of which is currently being renewed for increased engagement to support jurisdiction’s GHG program. 

 

For jurisdictions that SCC currently does not have a GHG MoU with, the intention is that SCC will engage with all Provinces and Territories before January 2019, to be informed and aware of their implementation path, and strategically engage with each jurisdiction to build capacity and provide information regarding third-party accreditation requirements and SCC’s GHGAP services as a national accreditation body.

 

As part of GHG MoU agreement activities, SCC participates in various teleconference meetings with the different jurisdictions. Bi-lateral meetings ensure each party is made aware of relevant program activities, including GHG policy and updates on the implementation of the regulatory requirements. 

 

Based upon SCC’s corporate priorities there are immediate, intermediate, and an ultimate strategic outcomes which SCC is committed to, with the expectation to proactively increase engagement with Canada’s GHG stakeholders.  

 

Immediate outcomes include:

  • Increased awareness and knowledge of SCC’s GHG validation / verification program and accreditation service offerings.
  • Increased understanding of SCC’s GHG validation/verification program with respect to the jurisdictional GHG programs.
  • Lead with improved coordination and collaboration with the jurisdictions, providing responses to initiatives and removal of immediate barriers, if any.

 

Intermediate outcomes include: 

  • Reinforced stakeholder capacity and industry knowledge of SCC’s GHG validation/verification programs and accreditation services offerings.
  • Improved access to SCC’s GHG program information available through public/industry forums and communiques.
  • Enhanced stakeholder response and/or requests for SCC’s GHG validation/verification programs, specifically relating to the jurisdictions governing GHG regulations.

 

The ultimate outcome would contribute to an increased industry and stakeholder awareness of SCC’s GHG accreditation services and resources. 

 

References:

Government of Canada

 

Ontario

Ontario Cap and Trade Program: Updates from the new Ministry of the Environment, Conservation and Parks.

  • Greenhouse Gas Emissions Quantification, Reporting, and Verification Regulation (O. Reg. 143/16) – Revoked under the Climate Change Mitigation and Low-Carbon Economy Act, 2016 O. Reg. 389/18 – Came into force on August 1, 2018.

 

  • Greenhouse Gas Emissions: Quantification, Reporting, and Verification regulation (O. Reg. 390/18) under the Environmental Protection Act, R.S.O. 1990, Chapter E. 19 (EPA) and updated the incorporated Guidelines. – Came into force on August 1, 2018.

 

Key Takeaways:

  • O. Reg. 390/18 includes new reporting requirements for capped participants (as of July 2, 2018).

 

  • Transitional wind down of cap and trade program details: 
    • Capped participants required to submit report on GHG emissions beginning on January 1, 2018 and ending on July 3, 2018  
    • Mid-Year 2018 GHG emissions reports due no later than October 1, 2018 
    • Reports must be verified by an accredited third party by December 1, 2018 

 

Link to Ministry Notice (EBR #013-3382): 

http://www.ebr.gov.on.ca/ERS-WEB-External/displaynoticecontent.do?noticeId=MTM1NzA4&statusId=MjA2NjI2&language=en

 

If you have any questions regarding the notice, please contact the Cap and Trade helpdesk directly at CTHelp@ontario.ca or 1-888-217-3326.

Deadline

N/A

Questions?

Please contact Elias Rafoul, Vice President, Accreditation Services, at elias.rafoul@scc.ca or +1 613 238 3222 for more information.