On March 7, 2017, the emission measurement and reporting sections of the N.L. Management of Greenhouse Gas Act, and the Management of Greenhouse Gas Reporting Regulations made under it, took effect. The effective sections impose reporting obligations on the targeted industrial facilities and grant the responsible minister the authority to make regulations. The new Regulations provide additional detail respecting the new reporting obligations and impose specific methodological requirements in relation to the required reports and the verification and audit of the reported data. The Act targets facilities emitting at least 15,000 tonnes of CO2 (equivalent) annually that are involved in:

  • Manufacturing and processing, including petroleum refining.
  • Mining and oil and gas extraction within the province, but excluding production in the offshore area.
  • Electricity generation (other than at the 490 MW thermal Holyrood facility).

The N.L. government passed the Act in 2016, but the remainder of the Act hasn't yet taken effect, and the government hasn't publicly indicated when it will. Once implemented, the remaining provisions will implement more significant measures:

  • Emissions Limits & Reporting. The provincial government will be authorized to pass regulations establishing emission limits for a range of industrial facilities that emit at least 25,000 tonnes of CO2 (equivalent) annually.
  • Greenhouse Gas Reduction Fund & Credits. A "Newfoundland and Labrador Greenhouse Gas Reduction Fund" will be created and be funded through the purchase of greenhouse gas reduction credits by owners and operators of regulated facilities and revenue derived from enforcement activities under the Act. Regulated emitters will be able to meet their applicable emission caps by: purchasing credits from the Fund; earning performance credits through reducing emissions below their respective caps; earning offset credits by sequestering greenhouse gases; or reducing greenhouse gases using a methodology prescribed by regulation.
  • Compliance. The Act will create offences punishable by fines and imprisonment and allow for the inspection and search of regulated facilities (including by means of search warrants).

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.