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Climate Change

The BC government has recently passed a number of significant pieces of climate-action legislation that define their approach to reducing greenhouse gas (“GHG”) emissions and preparing for the new low-carbon realities of the future.  We have gathered some informational resources to help members understand and respond to the requirements of the new regulations.

Legislation

The BC Government passed the Greenhouse Gas Reduction (Cap and Trade) Act on May 29, 2008.  This legislation creates a framework for BC to implement a market-based cap and trade program for large emitters other than those in the Public Sector. 

Furthermore, BC is a member of the Western Climate Initiative (“WCI”), a collaboration of independent jurisdictions working together to identify, evaluate, and implement policies to tackle climate change at a regional level. The WCI consists of 11 member jurisdictions, four Canadian provinces (British Columbia, Ontario, Manitoba and Quebec) and seven US States. 

The Canadian federal government recently updated the Facility GHG Reporting Regulations (applicable to 2009 GHG information to be reported in 2010) to lower the reporting threshold for organizations from 100,000 tonnes CO2e to 50,000 tonnes CO2e, along with other classification changes.  There is no requirement that this reported information, be verified by an independent third party.

British Columbia became the first jurisdiction in North America to require its public sector organizations to become carbon neutral in 2010. British Columbia government ministries, agencies, schools, colleges, universities, health authorities and Crown corporations must reduce their GHG emissions and offset remaining emissions by investing in offset projects. The Greenhouse Gas Reduction Target Act deals specifically with the Public Sector/Public Service Organizations and was passed in 2008.  The Emission Offsets Regulation in combination with the creation of a Crown Corporation, the Pacific Carbon Trust, regulates the purchase and sale of the offsets to achieve the target of neutrality.

Reporting Requirements

1) Reporting Regulation under the Greenhouse Gas Reduction (Cap and Trade) Act.

Beginning with the 2010 calendar year, and then each year subsequently, facilities that emit 10,000 tonnes or more of GHGs annually, not including carbon dioxide emissions from defined biomass, must report their GHG emissions to the BC government.  Entities that emit 25,000 tonnes or more of GHGs in a reporting period, not including carbon dioxide emissions from defined biomass, must have their emissions data verified by an accredited third party verification entity.  There are also requirements to report emissions of over 20,000 tonnes for the years 2006 to 2009 inclusive. 

Reporting facilities must submit an emissions report by March 31 of the year following each reporting period.  Each facility’s emissions data should be broken down by activity (e.g. cement production, copper smelting), source type and GHG type. Emissions must be calculated using the prescribed quantification methods, which are included in the Methodology Manual published by the Ministry of Environment.

Verification reports are to be submitted concurrent with emission reports, except for the 2010 and 2011 reporting years when they are due by September 1 of the following calendar year.  

2) Emission Offsets Regulation under the Greenhouse Gas Reduction Targets Act

The province’s Emission Offsets Regulation, set out requirements for GHG reductions and removals from projects or actions to be recognized as emission offsets for purposes of fulfilling the government’s 2010 carbon-neutral public sector commitment. The Regulation requires that emission offsets be validated and verified. The Pacific Carbon Trust, on behalf of public sector organizations, has already begun to purchase offsets and move toward carbon neutrality. 

For further information on the BC Government’s climate change legislation access the Climate Action Secretariate Legislation and Regulations page.

Useful Resources

The following are a number of resources that you may find useful and informative on the topic:

GHG Emissions Estimator prepared by the Ministry that can be used to estimate greenhouse gas emissions from a facility in advance of comprehensive data collection and compilation.

Article in Beyond Numbers written Chris Ridley-Thomas of KPMG “ Greenhouse Gas Emissions Reporting and the Role of Accountants”

The Forecast: Our Climate Change Newsletter by PWC  “Building a greener tomorrow: An update on federal and provincial climate change reporting regulations.”

GHG Reporting Alert for BC by Ernst and Young  “BC releases greenhouse gas emissions reporting regulation.”

Update on major accounting and auditing activities by Ernst and Young “SEC issues guidance on climate change and disclosures.”

GHG Protocol for Project Accounting prepared by The Greenhouse Gas Protocol an international accounting tool for government and business leaders to understand, quantify, and manage greenhouse gas emissions.

CICA Initiatives

For current updates and developments on CICA initiatives, please visit the Climate Change tab of the CICA website at http://www.cica.ca/climatechange/index.aspx

International Initiatives

In October 2009, the International Auditing and Assurance Standards Board released a Consultation Paper: Assurance on a Greenhouse Gas Statement – see http://www.ifac.org/Guidance/EXD-Details.php?EDID=0132

Contact at the ICABC

If you have any questions or need assistance please contact Jennifer Baddeley, Industry Adivisor, Special Projects Member Services. E-mail: baddeley@ica.bc.ca or Telephone: (604) 631-2572