Clean Fuel Regulations — 39
Recognition — project in foreign country 39 (1) The Minister must recognize a CO 2 e-emission-reduction project carried out in a foreign country or subdivision of a foreign country as a project that may create compliance credits when carried out if the Minister is satisfied that (a) based on the information provided to the Minister by the registered creator, the project meets the criteria set out in subsection (2) or (3), as the case may be; and (b) Canada has an agreement with the foreign country or the subdivision that meets the requirements set out in subsection (4). Generic quantification method (2) In the case of an application under subsection 38 (1) for the recognition of a CO 2 e-emission-reduction project and the use of a generic emission-reduction quantification method that is applicable to the project, the project must meet the following criteria: (a) the activities carried out outside Canada during the project that result in the reduction, sequestration or use of CO 2 e emissions are comparable in effectiveness with projects that are carried out in Canada with respect to the reduction, sequestration or use of CO 2 e emissions released during the activities carried out over the life cycle of a fossil fuel that is in the liquid state at standard conditions; (b) the activity specified in the generic emission-reduction quantification method that allows the project to begin to reduce, sequester or use CO 2 e emissions was or will be carried out on or after July 1, 2017; (c) the reduction, sequestration or use of CO 2 e emissions resulting from the project is determined using the generic emission-reduction quantification method; (d) the specified activities that would have been carried out if not for the implementation of the project and the CO 2 e emissions that would have resulted from those activities, as well as the greenhouse gas sources and sinks that have been selected by the applicant to determine those CO 2 e emissions, (i) are functionally equivalent to the project, in terms of the type and level of activity of products provided, (ii) are in accordance with ISO Standard 14064-2 and with the generic emission-reduction quantification method, and (iii) do not result in an overestimation of CO 2 e emissions resulting from those specified activities that would have been carried out by the applicant; and (e) the greenhouse gas sources and sinks that have been selected by the applicant and are relevant to the project meet the following conditions: (i) they are in accordance with ISO Standard 14064-2 and with the generic emission-reduction quantification method, and (ii) they do not result in an underestimation of CO 2 e emissions released during the project. Specific quantification method (3) In the case of an application under subsection 38 (1) for the recognition of a CO 2 e-emission-reduction project and the use of a specific emission-reduction quantification method that is applicable to the project, the project must meet the following criteria: (a) the activities carried out outside Canada during the project that result in the reduction, sequestration or use of CO 2 e emissions are comparable in effectiveness with projects that are carried out in Canada with respect to the reduction, sequestration or use of CO 2 e emissions released during the activities carried out over the life cycle of a fossil fuel that is in the liquid state at standard conditions; (b) the activity specified in the specific emission-reduction quantification method that allows the project to begin to reduce, sequester or use CO 2 e emissions was or will be carried out on or after July 1, 2017, unless the method provides that the activity may be carried out before that date; and (c) the reduction, sequestration or use of CO 2 e emissions resulting from the project is determined using the specific emission-reduction quantification method. Agreement with foreign country or subdivision (4) An agreement referred to in paragraph (1)(b) with a foreig