Saskatchewan is planning to move forward with its proposed greenhouse gas (GHG) management program, with draft offset program methodologies expected to be released in September 2010. These draft guidance documents will supplement the previously released Management and Reduction of Greenhouse Gases Regulations which are anticipated to be approved in fall 2010.
Saskatchewan has set a target of reducing GHG emissions to 20% below 2006 levels by 2020. The proposed threshold for regulated emitters is 50,000 tonnes of CO2 equivalent (CO2e) per year, and regulated emitters will be required to reduce emissions by 2% per year from 2010 to 2019 to meet the 20% reduction goal. In order to meet compliance obligations, regulated emitters will be able to purchase offset credits created from activities that have reduced and sequestered GHG in Saskatchewan and that occurred after January 1, 2006. In addition, regulated emitters will be able to contribute “carbon compliance payments” to the Saskatchewan Technology Fund Corporation, the proceeds of which will be used to invest in GHG reduction initiatives and research.
The proposed Saskatchewan GHG management program is similar to the one currently operating in Alberta, where the emissions threshold for regulation is also 50,000 tonnes of CO2e. Alberta and Saskatchewan are considering linking their GHG programs in order to increase the liquidity of the markets.