Carbon Market

Destruction of Methane from Drainage Systems at Active Coal Mines

The offset credit protocol (Protocol 4) concerns projects aimed at reducing greenhouse gas (GHG) emissions by capturing and destroying methane produced by drainage systems at active coal mines (underground or surface), except a mountaintop removal mine.

The methane must be destroyed on the mining site where it was captured. A flare or any other destruction device may be used. Emission reductions following pipeline injection of methane are considered as common practice in the operation of an underground mine and are eligible only for a surface mine.

The protocol is included in Appendix D of the Regulation respecting a cap-and-trade system for greenhouse gas emission allowances (RCATS).

An analysis is underway to determine whether this protocol will be converted into a ministerial regulation. The results of this analysis will be made public once they are available.

Submitting a project to obtain offset credits

As the promoter of projects involving the destruction of methane from drainage systems at active coal mines, you must complete the following steps to be eligible for offset credits.

Step 1: List a project

To list a project, you must complete the form Application to Register, Modify or Renew an Offset Credit Project (French, PDF, 1.2 MB). You must then send the form to the Minister, as indicated on the form.

The Minister will assign a code to your project and will list it to the Register of Offset Credit Projects.

An eligible project may include activities carried out prior to the project’s start date.

Step 2: Implement, run and monitor the project

Once your project has been launched, it must be monitored in accordance with the conditions set out in Appendix D of the RCATS.

Project monitoring includes the collection and recording of data required to quantify GHG emission reductions. It also involves the installation, operation, maintenance, verification and calibration of measuring instruments and other devices and equipment.

Step 3: Quantify GHG emission reductions and draft a project report

You must quantify your project’s GHG emission reductions and provide certain information required for the initial compliance period or for subsequent ones, as the case may be. To that end, please use the Offset Credit Project Report Template (French, Word, 110 KB) and the Protocol-Specific Information (complementary document to the Project Report Template - French,  Word, 156 KB).

You are required to send the project report(s) to the Minister only when you are ready to submit your application for issuance of offset credits, or at the Minister’s request.

Step 4: Have the project report verified by an accredited verification organization

Prior to submitting an application for issuance of offset credits, you must have the project report(s) verified by an accredited verification organization. The verification will be at the project promoter’s expense.

The verification organization must confirm with a reasonable level of confidence that the project report is in compliance with the RCATS and that the project’s emission reductions are free from significant errors, omissions or inaccuracies. The verification organization must issue a report in compliance with the conditions set out in the RCATS.

Step 5: Submit an application for issuance of offset credits and await analysis, decision and remittance of credits

To obtain offset credits for your project, submit an offset credit issuance application to the Minister. The application must include the information and documents set out in the RCATS, in addition to the project report(s) and the verification report. To that end, please use the form Application for the Issuance of Offset Credits and Promoter Declaration (French, PDF, 1.6 MB).

Your project will be analyzed after your application has been submitted. If all the requirements are met, the Minister will then issue the offset credits and deposit 97% of the credits into your general account in the C&T Compliance Instruments Tracking System Service (CITSS), rounded down to the nearest whole number. The remaining credits will be deposited into the Minister’s environmental integrity account, which serves as a cushion to replace credits that may have been cancelled in certain circumstances. Therefore, Québec’s offset credits are 100% guaranteed; there is no risk for the buyer.

Assistance

If you have any questions concerning this process, please contact the Carbon Market Division’s offset credit team by email at dmc.creditscompensatoires@environnement.gouv.qc.ca.

Please do not send personal or confidential information to this email address, as it is not secure.