Changes to the Alberta Offset System

The regulation for the Alberta Offset System (ABOS) is changing in 2012. There are 2 main changes that will have a material impact on the market.

1.    The level of assurance is changing from limited to reasonable.

Alberta Environment recognized when ABOS was implemented that they were approaching this with a “learning by doing” approach. Alberta set the level of assurance to "limited" to allow the system participants flexibility in the early stages of the program's development. However, Alberta has now mandated that the level of assurance be moved to the more typical level of "reasonable", consistent with many other offset markets.

This is expected to increase the risk of project failure and, for inadequately designed projects, increase the auditing costs by approximately 25%. Alberta Environment has completed 5 test audits of current offset projects and of these, only 1 passed, the others having material discrepancies.

The British Columbia Offset system requires offset projects to be developed to a similar "reasonable" level of assurance and therefore, Offsetters has a great deal of experience around the level of documentation and rigour required. This uniquely positions us to provide project development services to Alberta-based offset developers and purchasers, including due diligence services around existing projects.

Offsetters can manage project risk in a more onerous regulatory environment

2.    From January 1st, 2012 Alberta Environment will no longer accept historic vintages.

Alberta Environment will require that all offsets registered from January next year are from projects that create reductions going forward. At present the regulation allows offsets from vintages going back to 2002. This means that there is approximately 6 months available for carbon asset owners who have made reductions to quantify, verify and register these projects. As long as these projects are registered prior to the end of the year they will be eligible and therefore, the owners will be able to monetize the emissions reductions associated with their projects. Offsetters has a team of greenhouse gas experts able to turn projects around in short time frames, reducing the risk of missing deadlines and project failure.

Offsetters can facilitate and manage carbon project investments removing the burden for asset owners.

To complete an eligibility assessment for carbon market funding, email proje...@offsetters.ca or contact our offset project origination team at 604.699.2650 for more information.