E-Newsletter - May 14, 2021

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E-Ne w sletter dsfsfa An update from MBP May 14, 2021

mbbeef.ca

MBP Provided Feedback on Proposed Federal Greenhouse Gas Offset Credit System Regulations Manitoba Beef Producers (MBP) recently provided comments on the federal government’s proposed Greenhouse Gas Offset Credit System Regulations which aims to create a mechanism to reduce carbon emissions. According to the federal government, “the Federal Greenhouse Gas Offset System is a market-based approach… (that) will support a domestic carbon trading market under Canada's carbon price for industry – the Output-Based Pricing System (OBPS) – under which regulated facilities who exceed their emission limits can provide compensation by purchasing federal offset credits generated from activities not already incentivized by carbon pollution pricing… the System will stimulate demand for projects across Canada that reduce greenhouse gases and generate federal offset credits. The ability to generate and sell federal offset credits creates opportunities for farmers, foresters, Indigenous communities, municipalities, and other project developers to earn revenues from greenhouse-gas reductions and removals.” In its submission, MBP noted that Manitoba’s beef producers are responsible for managing tens of thousands of acres of privately-owned and leased agricultural Crown lands. On these lands an array of valuable ecosystem services is provided, including: carbon sequestration; providing habitat for an array of plant, animal and insect species; contributing to flood ad drought resilience; among others.

The creation of carbon offset systems creates potential opportunities for the agriculture sector, including beef producers. MBP has long advocated for the use of incentive-based programming to recognize ecosystem services provided by the agriculture sector. MBP stated that it is essential for farmers and ranchers to be recognized and rewarded for the ecosystem services they provide which benefit larger society, including reductions in GHG emissions. MBP raised some questions about the regulations, such as the question of additionality. Raising cattle involves a multi-year production cycle. As such, producers develop multi-year management plans aimed at protecting and improving the health of their soils, forages and pastures, and crop production lands. They use a variety of beneficial management practices and risk mitigation practices, some of which receive cost-shard funding from government and others via non-government sources. Each management decision has the potential to lead to further GHG reductions on the operation. As proposed, the Section 4 of the regulations regarding project eligibility includes restrictions for projects that were implemented prior to 2017. MBP is concerned this approach is punitive to producers whose early efforts have contributed to reductions in GHG emissions. MBP asked the federal government consider amending the proposed regulation to recognize carbon offset projects implemented prior to 2017. continued on page 3


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