Carbon offset credits generated through Jasper’s composting program could result in extra revenue for the community, but town council is concerned the province’s carbon trading program could help large emitters of greenhouse gas do more harm to the environment.

Council will decide on Tuesday whether or not to enter into the province’s carbon offset trading program, which would allow coal fire power plants, tar sands operations and other carbon emitters who produce more than 100,000 tons of GHG per year to offset their own carbon emissions by purchasing credits from carbon-saving companies. Jasper must sign an agreement with KC Environmental to see if the town is eligible to sell its credits. Since Jasper generates a small number of carbon offset credits, its credits must be packaged with other credits and sold with the help of a third party.

Environmental stewardship co-ordinator Lori Rissling-Wynn said the program looks like a good fit for Jasper, as it helps the town see a financial return for cutting greenhouse gases that could help subsidize the town’s composting program.

Under the new legislation, Jasper is eligible to sell carbon credits thanks to savings from its composting program. By diverting compostable waste from the landfill (where it transforms into methane), Jasper reduces its carbon footprint and is eligible to receive carbon credits through the provinces carbon offset program.

The town has about $50,000 worth of carbon offset credits accumulated since 2002, and would require a third party to market them. If the plan goes ahead, Jasper has chosen to work with KC Environmental, which would earn a 30 per cent commission on carbon credits sold. The province has set a $15 per tonne rate on greenhouse gases. The more Jasper composts, the more carbon credits it will accumulate. Therefore the town wants to add 50 green bins throughout the community, as well as work with restaurants to participate in the composting program. Currently 15 restaurants participate in Jasper’s composting program.

“The more we compost, the less GHG we emit. Compost produces methane in a landfill, which is one of the stronger GHGs,” Rissling-Wynn said, who noted the town saves transportation and tipping fees through composting. The community is slated to select a location for a new compost facility this year.

Mayor Richard Ireland isn’t yet convinced on the merits of the carbon offset program. He’s concerned by selling credits, large emitters can simply buy compliance instead of investing in cleaner technologies and actually reducing their greenhouse gas emissions. Mayor Ireland questioned if it’s ethical for the municipality to cut carbon emission so large emitters don’t have to.

He wants to ensure the town is participating in a program that will ultimately result in less GHG emissions.

Rissling-Wynn said participating in the provincial framework will help support an initiative. The program is only three years in length, and Rissling-Wynn notes the town can withdraw from the program if they’re unsatisfied.

“It’s a starting point. We recognize there are concerns with the legislation and we’ve had discussions with policy analysts. The intent is for the program to evolve over time.”

Similar carbon credit programs are being set up around the globe, and Rissling-Wynn said cap and trade systems are widely recognized as the future for cutting GHG emissions. By participating in the program, Jasper is supporting the province’s efforts to cut emissions, she said.

Alberta is the first province to introduce such a system. While Jasper could wait to see what the federal legislation will look like, environment minister Jim Prentice has previously stated Canada is waiting for the United States to unveil its climate change policy.

Mike Kennedy, an economist with the Pembina Institute said the province’s proposed program is weak, as it uses intensity based targets. That means if a company expands its operations, it doesn’t cut the number of greenhouse gases produced, only the intensity at which they are produced.

“Large emitters can produce as much greenhouse gas as they want as long as they reduce the intensity. So if you produce 100 tons and you double the size of your operation, the program says you can still produce 180 tons.”

While he’s happy the government is doing something about greenhouse gases, Kennedy said a hard cap and a higher price per ton on carbon would give the program some teeth. Higher prices for carbon offsets would penalize companies at a higher rate, and a hard cap would reduce market volatility, he said.

“Right now, there’s no guarantee a reduction in GHG will occur,” Kennedy said.

Under the program, large emitters can buy carbon offsets, trade carbon offsets with one another or cut emissions.

Speaking as an economist, Kennedy said Jasper is in a tricky place. More participants in the government program will result in higher potential for cutting GHG. But, more participants also means the price of carbon offsets will drop, which limits the incentive to trade.

“The rate is not high enough to promote trading,” Kennedy said. “The price isn’t high enough to change the system.”

More participants means more cuts to GHG, he said, which is ultimately the goal of the plan.

Kennedy also wants to see smaller emitters – those in the 50,000 ton range – also be eligible to purchase offsets. He believes more participants potentially buying credits will help drive up the cost of carbon, and in turn increase pressure for companies to cut emissions. He also said many of the offsets on the market are considered ‘poor offsets.’ Jasper’s GHG cuts don’t fall in that category.

Thus far, most of the carbon offsets are coming from the agricultural sector.