The Association of Municipalities of Ontario (AMO) and the Federation of Canadian Municipalities (FCM) agreed to work together to help Ontario municipalities create and sell Offset Credits.
AMO’s subsidiary, Local Authority Services (LAS) is offering to manage the technical and regulatory processes facing municipalities interested in creating Offset Credits from energy efficiency and district energy projects. FCM’s Green Municipal Corporation (GMC) will provide the same services for other projects not specifically supported by LAS, with an initial emphasis on landfill gas projects. GMC will also offer to purchase and sell (to regulated large emitters) Offset Credits created by any Ontario municipality. 

An Offset Credit is an emission reduction that has been verified, certified and registered according to federal regulations. These Offset Credits will counterbalance pollution by abating, reducing, or sequestering greenhouse gases (measured in an equivalent amount of carbon dioxide or CO2e). Under the evolving federal government’s regulatory framework, municipalities will be eligible to sell Offset Credits to regulated emitters such as large power producers and large GHG emitters in the forestry, mining, petrochemical, refining, and steel industries. Municipalities can create Offset Credits by implementing CO2e reducing projects that comply with federal protocols and processes. Protocols are expected to be developed for the following project types of municipal projects, among others: landfill gas, fleet fuel switching, district energy, and energy efficiency projects. 

While regulated emitters are unlikely to be interested in Offset Credits from small projects, they are expected to be interested in purchasing larger, aggregated pools of Offset Credits such as those to be developed by LAS and GMC. In addition, interested municipalities can avoid the numerous regulatory and technical obstacles as well as the price, supply, and project management risks associated with such projects by utilizing the expertise assembled by LAS and GMC.    

LAS’ Energy Services Division is currently developing a suite of energy conservation programs for member municipalities that will include Greenhouse Gas Offset Credit services for district energy and energy efficiency projects. For more information about these services consult the LAS Website.