Blue Source Canada, a subsidiary of Blue Source LLC, today announced that it has identified, registered and sold 158,000 tonnes of carbon offsets during the first compliance period for the Specified Gas Emitters Regulation in Alberta, North America's first regulated carbon trading market.
The emission offsets sold by Blue Source Canada were created through agricultural soil projects and biomass-fueled electricity and were registered in the Alberta Emissions Offset Registry.
Baseline Ag Services (a fully owned subsidiary of Blue Source Canada) through its agricultural partners Agri-Trend Aggregation and Pike Management Group, identified the offset opportunities working with farming communities that practice no-till and reduced-till systems. Agricultural communities practicing no-till farming techniques are capable of creating larger carbon absorption and retention in the soil compared to traditional farming techniques. Offset opportunities were also created through a biomass carbon reduction project involving the avoidance of methane creation through the destruction of wood waste used to generate electricity. Methane is a much larger contributor to global warming having a global warming potential factor 21 times larger than CO2.
The Alberta Specified Gas Emitters Regulation began in summer 2007 with the goal of reducing the emissions of every industrial facility that emits more than 100,000 tonnes of CO2 per year. Alberta's industrial facilities were to reduce greenhouse gas (GHG) emissions by up to 12 percent of their average 2003-2005 emissions between July 1 and December 31, 2007.
"The environment has benefited substantially through our work with these farming communities and the industries that participated in this system," said Dave LaBarre, president of Blue Source Canada. "This first compliance period proved beneficial across Alberta as the communities practicing no-till farming and biomass transfer were rewarded with terrific returns on their investments. Large emitters subject to the legislation benefited as well through the ability to purchase offsets for less than they would pay to the government's Climate Change and Emissions Management Fund."
To facilitate compliance in the Alberta system, emitters may pay into Alberta's Climate Change and Emissions Management Fund for $15 per tonne, invest in projects that reduce their physical emissions, or purchase offsets on a registered market. As one of the largest regulated GHG emissions markets in North America, Alberta large emitters could face steep financial penalties for not meeting their specified reductions.