As climate change takes center stage in global policy discussions, accurate measurement and reporting of greenhouse gas (GHG) emissions have become crucial for countries aiming to meet their climate commitments. Canada, with its diverse economic landscape and commitment to reducing emissions, has developed a comprehensive GHG reporting program at both the federal and provincial levels. These programs play an essential role in tracking progress, informing policy, and driving emissions reductions across the nation.
This article is the third part of a series looking at Canada’s cap-and-trade and performance based GHG emissions reduction programs (part 1), as well as carbon tax programs (part 2). In this final part, we take a deep dive into the Federal GHG Reporting Program (GHGRP) and also explore its provincial equivalents.
Canada’s Federal GHG Reporting Program (GHGRP)
Overview
The federal Greenhouse Gas Reporting Program (GHGRP) was established by Environment and Climate Change Canada (ECCC) in 2004. The program’s primary goal is to collect and disseminate data on GHG emissions from large facilities across the country. This data helps Canada meet its international reporting obligations under the United Nations Framework Convention on Climate Change (UNFCCC) and informs domestic policy-making.
Reporting Thresholds
Under the GHGRP, facilities that emit 10,000 tonnes or more of carbon dioxide equivalent (CO2e) per year are required to report their emissions annually. This threshold was lowered from 50,000 tonnes in 2017 to improve data granularity and coverage. The program covers a wide range of sectors, including oil and gas, electricity generation, manufacturing, and waste management. Today, there are two thresholds, one for general reporting and another with additional requirements:
- General Threshold: Facilities that emit 10,000 tonnes or more of CO2 equivalent (CO2e) per year are required to report their emissions.
- Additional Requirements for Higher Emitters: Facilities emitting 50,000 tonnes or more of CO2e must provide more detailed data, including information on specific emission sources and activities.
Reporting Requirements
- Annual Reports: Facilities must submit their GHG emissions data annually. The deadline for reporting is typically June 1 of the following year.
- Types of GHGs: The program requires reporting of emissions from several types of greenhouse gases, including carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), and several fluorinated gases.
- Emission Sources: Facilities must report emissions from various sources, such as combustion, industrial processes, and waste management.
Methodologies and Standards
- Calculation Methods: Facilities must use prescribed methods for calculating emissions, which align with international standards such as those from the Intergovernmental Panel on Climate Change (IPCC).
- Verification: While third-party verification is not mandatory, facilities are encouraged to ensure the accuracy and completeness of their data.
Data Submission
- Online Reporting: Facilities submit their emissions data through an online portal managed by ECCC. This portal is designed to streamline the reporting process and ensure data security.
- Confidentiality: While aggregate data is made publicly available, specific facility-level data is protected to maintain confidentiality.
Use of Data
- Policy Development: The data collected through the GHGRP is used by the Canadian government to develop and assess policies and measures aimed at reducing national GHG emissions.
- Public Transparency: The program enhances public transparency by providing access to national and sectoral GHG emissions data.
Compliance and Enforcement
- Legal Framework: The GHGRP operates under the Canadian Environmental Protection Act, 1999 (CEPA 1999), which provides the legal authority for data collection and enforcement.
- Penalties for Non-Compliance: Facilities that fail to report or provide inaccurate data may face penalties under CEPA 1999.
Updates and Amendments
- The program is periodically updated to reflect changes in international reporting standards and to incorporate feedback from stakeholders. Facilities are advised to stay informed about any changes to reporting requirements.
Data Collection and Use
The data collected through the GHGRP is used to compile Canada’s National Inventory Report, which is submitted annually to the UNFCCC. It also supports the development of emissions reduction policies and programs, such as carbon pricing and emissions trading systems. Additionally, the data is made publicly available, enhancing transparency and enabling stakeholders to track progress toward Canada’s climate goals.
Provincial GHG Reporting Programs
In addition to the federal program, several provinces have implemented their own GHG reporting requirements. These programs often complement the federal initiative and address region-specific needs and priorities.
British Columbia
British Columbia requires facilities emitting 10,000 tonnes or more of CO2e annually to report their emissions. The province also has a carbon tax and a Climate Action Plan, which use this data to target emissions reductions and promote clean energy.
Alberta
Alberta’s Specified Gas Reporting Program mandates that facilities emitting 10,000 tonnes or more of CO2e annually report their emissions. This data feeds into the Technology Innovation and Emissions Reduction (TIER) system, which is designed to reduce emissions intensity and drive innovation in the province’s energy sector.
Ontario
Ontario requires facilities emitting 10,000 tonnes or more of CO2e to report their emissions under its Environmental Protection Act. The data supports the province’s climate change plan and helps track progress towards emissions reduction targets.
Quebec
Quebec operates a cap-and-trade system linked with California’s, requiring facilities emitting 10,000 tonnes or more of CO2e to report their emissions. This data is crucial for the functioning of the cap-and-trade market and ensuring compliance with emissions caps.
Integration and Challenges
While federal and provincial programs often have similar reporting thresholds, they may differ in terms of specific reporting requirements and methodologies. This can present challenges for facilities operating in multiple jurisdictions, necessitating careful coordination to ensure compliance with both federal and provincial regulations.
Efforts are ongoing to harmonize reporting requirements and streamline data collection processes. This includes aligning methodologies and timelines to reduce the administrative burden on facilities and improve data consistency across programs.
Summary
Canada’s GHG reporting programs, both federal and provincial, are vital components of the country’s climate strategy. They provide the data necessary to track emissions, develop effective policies, and measure progress towards climate commitments. As Canada continues to enhance its climate action, these programs will play an increasingly important role in ensuring transparency, accountability, and success in reducing greenhouse gas emissions.
Contact us today to see how our solutions can help your business report for the Canadian federal GHGRP or any of its provincial equivalents