Ontario has launched its GHG cap and trade program effective January 1, 2017, under the “Climate Change Mitigation and Low-carbon Economy Act, 2016”. The important Ontario regulations: a cap and trade regulation, O. Reg. 144/161, and a reporting regulation, O. Reg. 143/162 set out the legal framework to reduce greenhouse gases (GHGs) in the province. Th first four-year (2017 to 2020) compliance period begins January 1, 2017. An estimated 148 entities emitting 82% of Ontario GHG emissions of 172.5 Million Tons (MT) in 2017 are mandatory participants in the Ontario GHG cap and trade program. These entities are required to reduce their GHG emissions by 17.7 MT by 2020, which would almost cover the 18.5 Mt reductions needed for Ontario to meet its 2020 target. For example, an entity emitting 500,000 tons of GHG per year are required to reduce its emission by 87,500 tons by 2020. If the entity cannot make GHG reduction internally, it has to buy carbon allowances from the market or carbon credits from carbon offset projects to meet their compliance obligation.
To develop a carbon offset project we will identify greenhouse gas (GHG) reduction project working with you. The potential project is evaluated, approved and registered in Ontario Offset Project Registry. On approval, the project is displayed on Ontario GHG Registry web-site. The potential Ontario buyers review the potential GHG reduction project and contact the project developer to negotiate a deal for buying carbon offset credits generated from the project for a 10-year cycle which may be renewal for another similar period.
Polar Design Studio (PDS) has more than 10 years of experience of developing carbon offset projects. By becoming our partner in carbon offset project you simply need to provide relevant data of your facility having carbon offset generation potential. PDS will perform all remaining steps from developing a project document, performing economic and the project additionality analysis, registering the project, finding project financier, implementing the project working with you and conducting project monitoring to quantifying the carbon offset credits generated each year. Your benefits are:
- Revenue from carbon offset project for 10 years
- Green image of your company by reducing GHG
- Helping Ontario economy to grow
- Create jobs
- Fight climate change for your future generations
Become Our Partner in Carbon Offset Project Development
There is a huge sector to be served related to the GHG reduction goals in Canada. Collaboration between Polar Design Studio and your business venture will be highly beneficial in realizing the full financial potential of this emerging market. You will provide preliminary screening information to identify potential project at your end and provide project details to Polar Design Studio.
Polar Design Studio will evaluate the project for GHG reduction potential and may request more details to determine project additionality and to compile a baseline emission and projected reduction in the next 10 years.
With your collaboration, Polar Design Studio will develop a preliminary economic analysis providing project development, validation and verification cost and potential earning from carbon offset credits to make the project economically viable.
You will share the preliminary project cost-benefit analysis of the project with other project owners if applicable and agree to proceed with the project for registration. We will obtain a project approval from the carbon offset registry and a letter of no objection from the Ministry of Environment (MOEE).
In consultation with you and other project owners, Polar Design Studio will develop ‘Project document for registration with carbon offset registry. Polar Design Studio will facilitate project proposal review and upstream due diligence by registry Board.
If the project document is acceptable to Carbon registry, Polar Design Studio will solicit an Ontario entity as project sponsor to support the project development. An agreement will be developed with the sponsor for investing in the project development and owning the carbon reduction credits for a specified period.
The following steps will be completed for project initiation and commissioning and ongoing monitoring, approval and transfer of CERs:
- Project identification
- Project preliminary evaluation of carbon offset potential
- Project Document
- Project Validation and Registration
- Project development and commissioning
- Monitoring, Verification and Certification
- Transfer of emission reduction (CO2 credits)