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Cabron Credits in Saskatchewan May 13, 2010
Greenhouse Gas (GHG) legislation (Bill 126) has now passed 3rd reading and will be ‘proclaimed’ once the regulations, currently in draft, are completed. Consultation sessions regarding the draft regulations concluded May 13, 2010. When the regulations are finalized, the expectation is the ‘act’ will be ‘proclaimed’, ‘gazetted’ and ‘in-force’ by June or July of this year.
Of particular interest will be the definitions of reduced till and zero till that will be a key qualifier for producer participation and the coefficients that will be used to reflect higher current zero till adoption rates in Saskatchewan. In comparison to Alberta it will likely mean the coefficients will be lower, requiring more acres to generate one tonne of carbon credits. Once the coefficients and corresponding regulations are finalized the value to the producer will be known and consequently the level of producer interest can be gauged.
Another factor that will establish how viable the offset market in Saskatchewan can be will be determined by the aggressiveness of the government to mandate how quickly and at what volume large final emitters must reduce their emissions annually. If the government chooses a passive approach, the market for tillage offsets may be limited. Conversely if the government chooses to be more aggressive the market for tillage offsets will be much more viable for aggregators and producers working together to meet the needs of large final emitters.
NET has been following the process closely and can help you as a producer determine how carbon credits may play a role on your farm in the coming months. Until the rules and regulations are finalized, NET recommends that no producer prematurely sign off their rights to the carbon credits that can be generated through accepted tillage practices.
Please contact Kevin Karmark if you have any questions at 306-338-2999
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