Carbon Market

Carbon Sequestration Through Afforestation or Reforestation on Private Lands

The Government of Québec now recognizes the participation of the Quebec private forest sector in the activities of the Québec-California regulatory carbon market. The innovative approach introduced in this regulation makes it possible to reward the removal of atmospheric CO₂ and the duration of these removals. Afforestation and reforestation projects could also contribute to the restoration of habitats for biodiversity, soil regeneration and the protection of watercourses.

Unlike the climate outcomes or benefits associated with GHG emissions reduction projects, the climate benefits associated with removing atmospheric CO₂ and storing of carbon in forest ecosystem biomass are only temporary. Consequently, this limits the impact or climate benefits associated with carbon sequestration efforts and also limits their capacity to offset GHG emissions from fossil fuel combustion.

To ensure the environmental integrity of all offset credits issued for this project type, partners of the Western Climate Initiative (WCI), of which Québec is a member, have adopted the “permanent” criterion. Among other things, this criterion stipulates that the climate benefits of projects designed to remove quantities of atmospheric CO₂ must be equivalent to those obtained by GHG emissions reduction projects.

The Regulation respecting afforestation and reforestation projects on privately owned land eligible for the issuance of offset credits (the “Regulation”) was developed and enacted for the primary purpose of ensuring the environmental integrity of offset credits as soon as they are issued. It should be noted that the innovative approach to quantifying and issuing offset credits adopted by Québec reduces the financial burden and operational constraints associated with project monitoring, reporting and verification requirements. This approach also provides great flexibility in terms of land uses and resources and leaves the promoter the choice of when to submit an issuance request. As regards particular features, the Regulation also recognizes afforestation projects carried out after December 31, 1989, but prior to the Regulation’s effective date (“early projects”) and allows the aggregation of projects. In addition, it should be noted that afforestation and reforestation projects completed outside the Province of Québec are not eligible for offset credit issuance under this Regulation.

How to submit a project involving afforestation or reforestation of a lot (or lot portion) within Québec privately owned land

To be entitled to offset credits under the Regulation respecting afforestation and reforestation projects on privately owned land, you must complete the following steps validated by a forest engineer when necessary, and meet all the regulatory requirements. Please note that whenever a form or template is issued by the Minister, you must use and submit it in compliance with the indications provided.

Step 1: Lot characterization

Prior the site preparation work, you must complete the initial characterization of the lot to be used for the project. The characterization process involves:

• Describing the project’s integration context
• Detailing the history of land uses on the lot for the project over a period of at least 10 years immediately preceding the project start date
• Define the lot’s biophysical characteristics
• Mapping out the lot to be used for the project
• Detailing the silvicultural strategy before and after project implementation
• Defining the initial carbon stocks in the project’s carbon reservoirs and simulated changes in these stocks over a minimum 100-year period (The results of these simulations will be used as inputs for determining a project’s radiative budget balance and, consequently, for determining the number of credits to be issued to a promoter in a given reporting period.)
• Preparing the baseline and project scenarios

Various tools (Calculator, growth model, carbon budget model, etc.) are available to assist you with this task.

You are required to compile this information and data in a project plan (French, Word, 110 kB) in compliance with the conditions set out in the Regulation. Please refer to Step 2 for instructions.

Step 2: Project filing

To file a project, you must provide the following documents:

1. Project notice
   
   To complete the notice, please use the form Project notice concerning offset credit projects involving afforestation and reforestation on privately owned land (French, PDF, 2.5 MB).
   
   
2. Project plan
   
   To prepare your project plan, please use the project plan template – afforestation and reforestation project on privately owned land eligible for the issuance of offset credits (French, Word, 110 KB).
   
   
3. Verification report for the project plan
   
   Prior to file a project, you must have the project plan verified by an accredited verification organization. The verification will be at the project promoter’s expense. Among other things, the verification organization must confirm with a reasonable level of confidence that the project plan complies with the Regulation and that the atmospheric CO₂ removals associated with the project are free from significant errors, omissions or inaccuracies. The verification organization must issue a report in compliance with the conditions set out in the Regulation.
   
   Your project must be submitted within the timeframe specified in Section 5 of the Regulation. A project may only be submitted if the project plan’s verification notice is positive.
   
   Once the documents submitted have been analyzed, the Minister will confirm your project’s eligibility and the validity of your baseline scenario. As applicable, a code will be assigned to your project, which will be listed to the Register of Offset Credit Projects.

Note: Your project may have already begun before your project notice is submitted to the Minister.

Step 3: Implement, run and monitor the project

During the implementation of the silvicultural strategy on the lot or lot portion for the project, you must collect some data and information in order to comply with the regulatory requirements. To that end, you must put in place an inventory mechanism (temporary and permanent sample plots).

You must also collect information and data concerning all financial and fiscal aid received, the occurrence of any natural or human-made disturbances and, as applicable, include a GHG emission offset program (this requirement only applies to early projects).

To record this information and data, please use the template Register of events for offset credit projects involving afforestation and reforestation on privately owned land (French, Word, 66 KB).

This register must also include all information deemed useful and supporting the completion of the project plan and report.

Step 4: Determine the project outcome and draft the project plan and report

The project outcome primarily involves:

1. Determining annual changes in net carbon and GHG flows obtained based on a comparison of the results associated with a project scenario with the results of a baseline scenario (you must complete this step using the Carbon Budget Model of the Canadian Forest Sector [CBM-CFS] , which is available in the section Project realisation tools);
   
   
2. Determining the climate benefit associated with each of these flows;
   
   
3. Determining, for each project reporting period, the number of offset credits to be issued to the promoter under the Regulation respecting a cap-and-trade system for greenhouse gas emission allowances (c. Q-2, r. 46.1).

For Steps 2 and 3, please use the calculator for the radiative budget balance and for the number of offset credits to be issued concerning the completion of an afforestation and reforestation project, which is available in the section Project preparation tools.

This information must be recorded in the project plan and the project reports.

When completing your project report, you must document all changes or updates made to the baseline or project scenarios, starting from the latest verification and continuing until the preparation of the subsequent project report. Please use the template Register of the characterization of the baseline and project scenarios (French, Word, 846 KB). 

To prepare your project report, please use the template Offset credit project report – afforestation and reforestation project on privately owned land (this template will be available in the spring of 2024 - contact the offset credit team at the address below if you wish to submit a project report).

Step 5: Project plan and project report verification by an accredited verification body

Your project plan must be verified by an accredited verification organization before it can be submitted to the Minister. Similarly, your project report must also be verified before your offset credit issuance application can be submitted.

Among other things, the verification organization must confirm with a reasonable level of confidence that the project plan or project report complies with the Regulation and that the atmospheric CO₂ removals associated with the project are free from significant errors, omissions or inaccuracies. The verification organization must issue a report in compliance with the conditions set out in the Regulation.

Step 6: Submit an offset credits issuance request, analysis, decision and issuance of offset credits

Filing an offset credits issuance request involves the simultaneous submission of an offset credits issuance request, a project report and a verification report for the project report.

To submit an offset credits issuance request, please use the form Offset credits issuance request – afforestation and reforestation project on privately owned land (French, PDF, 2.9 MB.

To submit an offset credits issuance request related to projects aggregation, please use the form Offsets credits issuance request - afforestation and reforestation projects aggregation on privately owned land (French, PDF, 2.1 MB).

To draft the project report, please use the template Offset credit project report – afforestation and reforestation project on privately owned land (this template will be available in the spring of 2023 - contact the offset credit team at the address below if you wish to submit a project report).

An offset credits issuance request may only be submitted if the verification notice for the project report is positive.

Your project will be analyzed after your request 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.

Forms and templates

• Form: Project notice concerning offset credit projects involving afforestation and reforestation on privately owned land (French, PDF, 2.5 MB)
• Form: Application for issuance of offset credits - Projects involving afforestation and reforestation on privately owned land (French, PDF, 687 KB).
• Form: Application for issuance of offset credits - Projects aggregation involving afforestation and reforestation on privately owned land (French, PDF, 2 MB)
• Template: project plan – afforestation and reforestation project on privately owned land eligible for the issuance of offset credits (French, Word, 110 KB)
• Template: Register of events for offset credit projects involving afforestation and reforestation on privately owned land (French, Word, 66 KB )
• Template: Register of the characterization of the baseline and project scenarios (French, Word, 846 KB)

Project realisation tools

Growth models

Growth models are essential tools for foresters wishing to evaluate different variables associated with forested areas. Simulations of annual changes in a project’s carbon stocks in the Carbon Budget Model of the Canadian Forest Sector (CBM-CFS) involve the use of growth curves. A growth curve must be associated with each cartographic stratum or forest stand included in the project scenarios. The growth curves used for each scenario must represent the contextual effect of past and future usage and forest management, in addition to the effect of the biophysical characteristics of the project lot (or lot portion) on biomass growth and volume.

You must generate or select a growth curve in compliance with the conditions set out in the Regulation. To that end, you may use one of the following models:

• Artémis-2014, Tree-scale growth model
  
• CroiRePlant, Growth model for black spruce, white spruce, Norway spruce and jack pine plantations in Québec: ftp://ftp.mrn.gouv.qc.ca/Public/Drf/CAPSIS/CroirePlant/TablesRendementPlantation/
  
  For other softwood species, you may use the results of the work of Bolghari and Bertrand (1984).
• Natura-2014, Stand-scale growth model: ftp://ftp.mrn.gouv.qc.ca/Public/Drf/CAPSIS/Natura-2014/
  
  
• SaMARE-2014, Tree-scale growth simulator for maple forests in Québec: ftp://ftp.mrn.gouv.qc.ca/Public/Drf/CAPSIS/SaMARE/Version2014/

Under the Regulation, you are allowed to use other models to generate or select a growth curve. However, you must document the data or methods you use to represent changes in the biomass and volume of all species considered in the project, including a notice signed by a member of the Ordre des ingénieurs forestiers du Québec (OIFQ) so the Minister may attest to the validity and robustness of the data and methods used.

Carbon Budget Model of the Canadian Forest Sector (CBM-CFS)

The Carbon Budget Model of the Canadian Forest Sector (CBM-CFS) is used to define the initial carbon stocks within various carbon reservoirs in the baseline and project scenarios, and to simulate changes over a minimum 100-year period.

For information on the CBM-CFS developed by Natural Resources Canada’s forest carbon accounting team or to download the model free of charge, please visit the webpage Carbon Budget Model.

For information on forest carbon and forest carbon accounting, please visit the page Canada’s forest carbon reporting system.

Calculator for the radiative effect budget and for the number of offset credits to be issued concerning the completion of an afforestation and reforestation project

The Calculator for the radiative effect budget balance and for the number of credits to be issued concerning the completion of an afforestation and reforestation project (CBEF/CrC-BR) was developed by the Centre international de référence sur l’analyse du cycle de vie et la transition durable (CIRAIG), as mandated by the Ministère de l’Environnement, de la Lutte contre les changements climatiques, de la Faune et des Parcs. Drawing on the CBM-CFS results, this calculator is used to define the net annual budget of a project’s carbon stocks and GHG emissions, together with the number of offset credits to be issued based on the radiative effect balance associated to them.

Note that the calculator available to you uses an Excel spreadsheet with a macro. Running the macro automates the determination of your project’s balance. Depending on the security system used by your computer, you may need to unblock the macro to enable it. To unblock a macro, go to the properties of the downloaded file “Calculateur-bilan-projet-BR-SPEDEQuebec-v2_0.xlsm.” In the “Security” section, select the “Unblock” checkbox and press “OK.”  

Assistance

If you have any questions about carrying out afforestation and reforestation projects under the Regulation, please contact the Carbon Market Division’s offset credit team by email at dmc.creditscompensatoires@environnement.gouv.qc.ca.

Before sending your email, please indicate in the subject line, “Afforestation and Reforestation Project Question.” In the body of the email, list all topics and questions that you would like us to respond to.

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