B.C. Output-Based Pricing System

Last updated on July 23, 2024

Putting a price on carbon pollution is a key part of fighting climate change and moving our province to a greener future.

Since 2008, the Province has enacted a carbon tax under the B.C. Carbon Tax Act which includes a tax on consumed fuels. Since 2019 there has also been a carbon pricing system for large industry, the CleanBC Industrial Incentive Program (CIIP).

On April 1, 2024, a newly designed B.C. Output-Based Pricing System (B.C. OBPS) will replace the CIIP and will be mandatory for large industry. The B.C. OBPS ensures there is a price incentive for industrial emitters to reduce greenhouse gas (GHG) emissions while promoting innovation and protecting competitiveness.

Industry will need to prepare for the B.C. OBPS by following the initial steps below.

If you are unsure if the B.C. OBPS will apply to your industrial operation, please contact GHGRegulator@gov.bc.ca

What is the B.C. OBPS?

The B.C. OBPS:

Is an industrial carbon pricing system designed specifically for industry in B.C. and is mandatory for operations that emit over 10,000 tons of carbon dioxide equivalent (tCO₂e) per year
Incentivizes industrial emitters to reduce their GHG emissions by using a performance-based system
Assesses operations on an annual basis
- Operations that emit under their annual emissions limit will earn credits
- Operations that emit over their emissions limit will have compliance obligations (with flexible options to meet compliance obligations such as earned credits, B.C. offset units, or direct payments)
Supports B.C.'s carbon market, which includes the buying and selling of B.C. verified offset units
Follows the federal carbon price path and supports the Province's goal of reducing emissions by 40 percent by 2030, 60 percent by 2040, and 80 percent by 2050

What's new?

The B.C. OBPS provides new opportunities for industries to maintain their competitiveness while supporting efforts towards decarbonization.

This includes:

Flexible compliance mechanisms such as carbon offsets and earned credits to meet compliance obligations
Tightening rates to ensure annual increases to stringency as industry adopts lower-carbon technologies
A carbon tax exemption for industrial operations in the program

B.C. OBPS first steps

Check if your organization already has a Business BCeID by searching the BCeID business directory. If not, register for a Business BCeID following step 1.

If you already have a Business BCeID, proceed to step 2 and register for the B.C. OBPS using your operator's Business BCeID on the new B.C. Industrial Emissions Reporting System (BCIERS) web application and apply for B.C. OBPS Regulated Operation Identification (BORO ID). Industrial operators need a BORO ID to claim a carbon tax exemption for fuel purposes.

Step 1: Obtaining a Business BCeID

All operators must have a Business BCeID prior to applying for carbon tax exemption and prior to registering for the B.C. OBPS. A Business BCeID provides secure access to online government services and is necessary to participate in the B.C. OBPS.

Operators must use the Business BCeID associated with the legal business name for their operation. If there are multiple operators, the designated operator is required to register. Personal and Basic BCeIDs cannot be used to access B.C. OBPS digital services.

To ease the transition to a B.C. OBPS, operators are strongly encouraged to check whether their organization has an appropriate Business BCeID and, if not, to apply for one as soon as possible.

View instructions and support for obtaining a Business BCeID if needed.

If technical issues arise during the BCeID application process, please reach out to the BCeID team directly.

Step 2: Applying for the B.C. OBPS

Regulated industrial operations must register for the B.C. OBPS using the BCIERS to apply for a BORO ID. Industrial operations will need a BORO ID to claim a carbon tax exemption from fuel purchases.

Please review the Getting Started with the B.C. OBPS: General Program Guidance (PDF, 330KB) explaining how to access the BCIERS and apply for the BORO ID.

The following resource will be needed during the application process:

Signed Statutory Declaration (PDF, 273KB)

Claiming the carbon tax exemption

Starting April 1, 2024, regulated operations will be able to claim an exemption from paying carbon tax on their facility-use fuel and combustibles. Exemptions are administered through the Ministry of Finance.

To begin claiming the exemption on April 1, 2024, operators will have to register for the B.C. OBPS and apply for a BORO ID via the BCIERS. The BORO ID is used for completing a carbon tax exemption certificate. Operators should provide the completed certificate to their fuel suppliers at or before the sale.

B.C. OPBS registrants who pay carbon tax on qualifying facility-use fuel for exempt purposes can apply to the Ministry of Finance for a carbon tax refund.

Opting in to the B.C. OBPS

Industrial operations within a regulated sector that emit less than 10,000 tonnes of CO₂e per year may apply to the Director of Greenhouse Gas Industrial Reporting and Control Act to be designated as an opted-in operation in the B.C. OBPS.

To apply as an opt-in operation under the B.C. OBPS, please refer to the following steps:

Obtain a Business BCeID and apply for a BORO ID on the BCIERS
Depending on the type of operation, complete either the Single Facility Organization (SFO) application form (PDF, 307KB) or the Linear Facility Organization (LFO) application form (PDF, 347KB). These forms must be signed by a senior officer, such as a Chief Executive Officer, notarized and submitted via ghgregulator@gov.bc.ca

To determine if your operation is an SFO or LFO, please refer to the reporting obligation for opt-ins under the B.C. OBPS.

The following resources will be needed during the application process:

Key dates in 2024

January 1, 2024: Beginning of the 2024 compliance period (starting point for tracking of emissions and production data for 2024).

March 5, 2024: BCIERS launch to register for BORO ID.

April 1, 2024: BORO IDs issued and can be used to exempt fuel purchases.

August 1, 2024: Deadline to apply to be an opted-in operation (reporting or regulated) for the 2025 reporting/compliance year.

December 31, 2024: End of the 2024 compliance period (end point for tracking emissions and production data for 2024).

For a technical look at the B.C. OBPS components and to access additional resources, see related links:

Contact information

For any questions or comments relating to the B.C. OBPS reach out to

GHGRegulator@gov.bc.ca

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