Output-based pricing system

This system is used to regulate greenhouse gas emissions from our large emitters, which includes New Brunswick’s industrial and electricity generation sectors.

  


About

The New Brunswick output-based pricing system (the “NB OBPS”) is used to regulate greenhouse gas emissions from large emitters, which includes New Brunswick’s industrial and electricity generation sectors.  
 
On January 1, 2021, facilities emitting 50,000 tonnes or more of carbon dioxide equivalent (CO₂e) emissions annually in the province became subject to the NB OBPS. Facilities emitting between 10,000 tonnes and 50,000 tonnes of CO₂e or more have the option to participate in the NB OBPS by “opting-in”. 

This regulatory system allows the province to establish greenhouse gas emissions performance standards, that facilities are required to achieve. Any facility that doesn’t meet its performance standard will have a compliance obligation. The provincial system has been designed to ensure that large emitters are contributing their share in the reduction of the province’s overall greenhouse gas emissions in a manner that maintains the competitiveness of our businesses and prevents carbon leakage. Carbon leakage refers to a situation where a business may relocate production to areas with less stringent policies, leading to an increase in greenhouse gas emissions. 

The requirements for the system are contained within the Climate Change Act and associated Regulations, the Reduction of Greenhouse Gas Emissions Regulation (the “Regulation”) and Standards, the Reporting and Reduction of Greenhouse Gas Emissions Standard (the “Standard”).


Guidance for facilities

Registration (Click to expand) The Department of Environment and Local Government is currently developing a registry to support the NB OBPS. This registry will facilitate credit tracking, awarding, trading, retirement, and expiration. The registry will be used to report and track greenhouse gas reporting submissions.

Mandatory regulated facilities
Facilities that emit more than 50,000 tonnes of CO₂e per year are subject to the Regulation and are mandatory participants in the NB OBPS. These facilities must register here: Complete the NB OBPS registration form < Link to form (PDF): https://www2.gnb.ca/content/dam/gnb/Departments/env/pdf/Climate-Climatiques/forms-formulaire/nb-obps-application-for-registration.pdf

Voluntary opt-in facilities
Facilities that emit more than 10,000 tonnes of CO₂e per year but less than 50,000 tonnes may choose to voluntarily opt into the NB OBPS. These facilities must submit a voluntary opt-in form and a voluntary opt-in registration form on or before December 1st of the year preceding the year in which the opted-in designation is intended to be effective.

Emitters must first submit a voluntary opt-in form, once approved by the province, the voluntary opt-in registration form must be submitted 15 days following the designation of the facility.
Complete the voluntary opt-in form

Complete the voluntary opt-in application for registration form

NB OBPS Reference Number
Once the registration form for a mandatory or opt-in facility is submitted, each regulated facility will receive a unique NB OBPS reference number. This number will act as an identification number and will be required for any future submissions.
If a facility is required to reregister within the NB OBPS, the registration forms listed above are to be used.

Baseline emissions intensity submission (Click to expand)

In accordance with the Regulation and Standard, a baseline emissions intensity must be established for each product at a regulated facility and should be representative of operating conditions at the time of submission. This information will be used to determine the emissions limit of the regulated facility. The facility owner or operator may select the representative baseline years and products in accordance with the Regulation, however, these must accurately account for all regulated emissions. Once the facility has been successfully registered in the NB OBPS, the Department of Environment and Local Government will provide the facility with information regarding the baseline emissions intensity submission.

This does not apply to facilities that are involved exclusively in electricity generation.

For regulated facilities subject to the NB OBPS, the verified baseline emissions intensity submissions are due September 30th of the first compliance period for the regulated facility. 

For new regulated facilities (in commercial production for less than three (3) years), baseline emissions intensity submissions shall be established in accordance with the Regulation. If a facility would like to submit an application to adjust the baseline emission intensity or request alternative baseline years, this must be submitted on or before June 1st of the compliance period in which the baseline emissions intensity is intended to apply. In this case, the revised baseline emission intensity submission or the request for alternative baseline years can be submitted using the following forms:  

Complete the application to adjust baseline emission intensity

Complete the request for alternative baseline years

Removal submission request (Click to expand)

In accordance with section 6 of the Regulation, a regulated facility may apply to be removed from registration if the total quantity of regulated emissions is less than 50,000 tonnes in each of the three consecutive compliance periods before the date of the application. A removal submission request must be submitted by the regulated facility using the following form:

Complete the removal submission form

Standby period request (Click to expand)

In accordance with section 7 of the Regulation, a regulated facility may apply to the Minister of Environment and Climate Change (the “Minister”) to be declared in a standby period. A standby period request must be made by the facility using the following form:

Complete the standby period request form

Decommissioning request (Click to expand)

In accordance with section 8 of the Regulation, a regulated facility may apply to the Minister for a declaration that the regulated facility has been decommissioned using the following form: 

Complete the decommissioning request form

Reporting (Click to expand)

Verified greenhouse gas emissions report

The Greenhouse Gas Emissions Report for regulated facilities must be prepared in accordance with section 7.1 (2) of the Reporting and Reduction of Greenhouse Gas Emissions Standard. The registry will be utilized to support submission requirements. 

The Verified Greenhouse Gas Emissions Reports for the 2021 and 2022 compliance periods are due June 1st, 2023. For each of the following compliance periods, Greenhouse Gas Emissions Reports are due June 1st of the year following the compliance period.

Compliance reports 
 
The Compliance Reports for regulated facilities must be prepared in accordance with section 8.1 (2) of the Reporting and Reduction of Greenhouse Gas Emissions Standard. The registry will be utilized to support compliance reporting requirements. 

The Compliance Reports for the 2021 and 2022 compliance periods are due December 15th, 2023. For each of the following compliance periods, Compliance Reports are due December 15th of the year following the compliance period.


Important dates

  • Regulated facilities subject to the NB OBPS verified baseline emissions intensity submissions are due September 30th of the first compliance period for the regulated facility. 
  • For new regulated facilities (in commercial production for less than three years), baseline emissions intensity submissions shall be established in accordance with the Regulation.
  • The verified greenhouse gas emissions reports for the 2021 and 2022 compliance periods are due June 1st, 2023. 
  • For each of the following compliance periods, Greenhouse Gas Emissions Reports are due June 1st of the year following the compliance period. 
  • The compliance reports for the 2021 and 2022 compliance periods are due December 15th, 2023. For each of the following compliance periods, compliance reports are due December 15th of the year following the compliance period.

Legislation and policy


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