Summary/Abstract
In January 2025, Environment and Climate Change Canada (ECCC) released a preliminary draft of its Federal Offset Protocol (Protocol) for direct air carbon dioxide capture and geological storage (DACCS) projects. The Protocol is intended for projects capturing carbon dioxide (CO2) directly from the atmosphere and storing it in subsurface geological formations. The draft Protocol proposes a framework for generating federal offset credits. DACCS projects and activities would thus be subject to specific conditions, as well as measurement, reporting and verification requirements to quantify GHG removals generated by the project.
To be eligible, the project must be a new project with a start date (i.e., the date of the first injection in the storage site) on or after January 1, 2022. Further, the project site must be located in a single province or territory that has sufficient laws governing the permanent storage of captured CO2. At present, only Alberta, British Columbia and Saskatchewan have been designated as such. Project proponents can employ any specific direct air capture process including chemical, mechanical or electrochemical processes. Project proponents can also use any type of geological storage reservoir, although the captured CO2 cannot be used for enhanced oil recovery purposes.
The deadline for comments on the draft Protocol is March 28, 2025.