From Benchmarks to Credits: Greenhouse Gas Management Gets a Makeover
On March 30, 2023, Newfoundland and Labrador enacted Regulation 19/23, amending the Management of Greenhouse Gas Regulations. These amendments are designed to enhance the management and reporting of greenhouse gas (GHG) emissions from industrial facilities. The aim is to regulate and mitigate greenhouse gas emissions from industrial sources to address climate change.
The regulation introduces new definitions for “baseline industrial process emissions intensity” and “industrial process emissions,” encompassing emissions from activities such as hydrogen production and steel manufacturing. These definitions facilitate more accurate calculations and comparisons of emissions.
Revisions have been made to the methodology for calculating baseline emissions intensity for various facility types, including mobile offshore industrial facilities. These updates are essential for establishing benchmarks and tracking progress over time.
For the year 2023 and beyond, new formulas have been implemented for calculating baseline emissions intensity for both stationary and mobile offshore facilities. These formulas ensure that emissions are assessed in alignment with the facilities’ actual operational conditions.
A new provision details the calculation of baseline emissions intensity specifically for industrial processes. This includes comprehensive formulas for both existing and newly established facilities, taking into account factors such as production volumes and actual emissions.
Facilities are permitted to request updates to their baseline emissions intensity if they introduce new machinery or experience significant operational changes. This provision ensures that regulations remain applicable and reflective of technological and operational advancements.
The regulation includes mechanisms for performance credits, which reward facilities that surpass emissions reduction targets. It also specifies procedures for appealing decisions related to emissions management, including appeals to the minister and, if necessary, to the Supreme Court.
Source: Newfoundland and Labrador (19/23) March 31, 2023