British Columbia Carbon Offset Program
Carbon offset & Carbon offset program
Carbon offsets represent emissions reduced by some offsetting activities or projects,
which are environmental beneficial, such as reforestation projects, renewable energy
projects, or hybrid heating projects. Individuals or organizations could buy carbon offsets
to support activities of reducing carbon emissions. For example, Air Canada offers its
customers the opportunity to buy carbon offset for contributing environmental beneficial
projects.
Carbon offset is considered a solution to control or reduce the GHG (greenhouse gas)
emissions. Therefore, the government of British Columbia launched a carbon offset
program in the end of 2008. The main goal of the program is to achieve carbon neutrality
within the government before 2010. A carbon neutral government means net-zero carbon
emissions in public sector. Specifically, in 2007, the government of British Columbia
passed the Greenhouse Gas Reduction Targets Act (GGRTA), which basically requires a
public sector organization must apply emission offsets in accordance with the
regulations to net those emissions to zero. Under the extent of Carbon Offset Program,
every unit of carbon emissions produced by B.C. public sector should be compensated
by carbon reduced from carbon offset projects. By supporting carbon offset projects,
public sector organizations could buy carbon offsets at the fixed price of $25 per tonne
carbon from Pacific Carbon Trust (PCT), a crown corporation which delivers B.C. based
greenhouse gas offsets.
Someone states that the carbon offset program could actually be considered as a capand
–trade program for B.C. government, where the carbon “cap” is zero because of its
carbon neutral government goal. The statement is weak because of the fixed price and
the only one supplier (PCT) in this market.
Pacific Carbon Trust (PCT)
Pacific Carbon Trust is an independent Crown corporation, which provides its clients
carbon offsets at the price of $25 per tonne. It claims its goal is to “deliver quality
B.C.- based greenhouse gas offsets to help clients meet their carbon reduction goals
and to support growth of the low-carbon economy in B.C.” Since carbon offset projects will
create carbon offsets. The PCT will directly sell those certain amount of carbon offsets
and the collected revenue will directly come back to support that carbon reducing project.
Whom the carbon offset program covers?
Not under the carbon offset program, private companies could buy carbon offsets from
other organizations, but not PCT. Companies could use this way not only compensate
their carbon emissions, but also show their environmental awareness, which helps
them build good reputation.
Under the carbon offset program, a public sector organization needs to buy offsets in
order to achieve the goal of becoming a carbon neutral government before 2010.
One thing really arises discussion is that schools, hospitals and other health authorities
are also include in “public sector”, who needs to be penalized by polluting.
The B.C. Liberal government has faced criticism from The B.C. School Trustees
Association. They questioned the government that money was transformed from publicsectors(example: schools, hospitals) to private sector via PCT. The government
responded by claiming that schools’ payment for buying offsets will actually go back to
school in an energy efficiency capital fund. However, no evidence showed that such move
has been made for schools or hospitals.
Assumptions & Cost effectiveness analysis
The carbon offset program has some basic assumptions to become a cost effective way
to control GHG.
1. Only by carbon offset, the carbon dioxide or GHG could be reduced.
2. The reduction of emissions is irreversible.
3. There exists an third party which could verify and audit the emission reductions
4. The carbon offset projects will not cause more emissions elsewhere
However, there are more uncertainties in cost effectiveness analysis because of the
stringent carbon neutral requirement and the controversial PCT. One of issues is free
riding. For example, an organization may offer a carbon offset project for PCT. Since its
project is environment beneficial and will reduce certain amount of carbon emissions, it
can require the payment reduction (negotiable price times carbon reduced) for carbon
offsets, which are bought from PCT. The problem is the reality that the negotiable price. It
could be higher than $25/tonne. If the project is actually technically beneficial for the
organization, meaning that it will be implemented anyhow, no matter whether there are
carbon offsets program or not. Therefore the additional part of price (negotiable price
minus $25/tonne) paid by PCT is actually unnecessary. In the case, the carbon offset is
not efficient anymore.
To expend this discussion, one thing needs to be mentioned :the PCT refuses to
public the prices they pay for every single carbon offset projects they offer to public
sector organizations. Doubts come out that whether PCT really cares more about
choosing a cost effective project or a politically opportune showcase projects.
Recently, B.C.’s Auditor General John Doyle concluded that the carbon neutrality
claimed by B.C. government is not accurate and those so-called carbon offset
program aren’t really offsetting carbon emissions as they are supposed to, after
examining two projects provided by PCT.
Outcome & what is expected?
The B.C. government declared that the public sector has achieved their carbon neutral
goal in 2010 and 2011. It also announced that it was the first jurisdiction in North
America to achieve carbon neutrality.However, because of many controversial issues and many other reasons. B.C. decides to transfer the carbon offset program to Climate Action Secretariat. Moreover, the controversial PCT will be eliminated and the relevant activities will continue within the government.

Furthermore, according to the Environment Minister, Mary Polak, the government is
considering not include health agencies and post-secondary institutions into public sector,
which will be penalized by polluting within the carbon offset program.

Reference

Moore, Dene.(2013,Nov 19).Pacific Carbon Trust Folded Into B.C. Government In Cost-
Cutting Move. The Canadian Press. Retrieved from
http://www.huffingtonpost.ca/2013/11/19/pacific-carbon-trust_n_4303711.html

B.C. Auditor general.(2013,Mar 27).Carbon offsets program slammed by B.C. Auditor
General. CBC News. Retrieved from
http://www.cbc.ca/news/canada/british-columbia/carbon-offsets-program-slammed-
by-b-c-auditor-general-1.1351316

Ministry of Environment.(2012).Carbon Neutral Government Overview. Retrieved from
http://www.env.gov.bc.ca/cas/reports/cnar/CNG-overview-2012.pdf

Hoekstra,Gordon. (2012,Jun 29).B.C.’s ‘controversial’ carbon trading system under
review.Vancouver Sun. Retrieved from
http://www.vancouversun.com/technology/controversial+carbon+trading+system+under+review/6858021/story.html