Introduction: A crucial step in Canada’s energy transition
Bill C-59, passed on June 19, 2024, marks a decisive turning point in Canada’s climate policy. Designed to strengthen the transparency and traceability of greenhouse gas (GHG) emissions, it represents a major step towards achieving national climate objectives. But beyond its role in the ecological transition, this legislation represents challenges and opportunities for businesses.
In this article, we explore the definition of Bill C-59, its links to the carbon market, and its concrete implications for Canadian businesses.
What is Bill C-59?
Bill C-59, officially introduced by the Canadian government in 2024, aims to strengthen the regulatory framework for GHG emissions.
Definition and objectives
This climate law introduces increased reporting and compliance requirements for companies, particularly those operating in high-emission sectors. Its aim is twofold:
- Improving environmental transparency: enabling better traceability of emissions through accurate and accessible data.
- Encourage innovation and green investment: create an environment where companies are incentivized to reduce their emissions, while benefiting from greater access to the carbon market.
A strategic legislative and political context
This initiative is part of Canada’s commitment to the Paris Agreement, which requires signatory countries to limit global warming to 1.5°C. Bill C-59 is designed to fill gaps in previous regulatory frameworks and to bring Canada in line with international best practices.
Bill C-59 and the Carbon Market
The carbon market, whether voluntary or regulated, is a key tool in the fight against climate change. Bill C-59 introduces innovations that strengthen this essential mechanism.
A reminder of how the carbon market works
The carbon market is based on a simple principle: give an economic value to GHG emission reductions and encourage action on residual emissions through the purchase of carbon credits. This mechanism can be :
- Regulated market: imposed by governments (e.g. the cap-and-trade system).
- Voluntary market: used by companies or organizations to offset their residual emissions and meet climate objectives.
Bill C-59’s contributions to the carbon market
Bill C-59’s impact on the carbon market aims to :
- Strengthen the credibility of carbon credits through increased certification and verification requirements.
- Encourage corporate participation in local and national emissions reduction initiatives.
- Introduce greater transparency thanks to a carbon credit tracking system, companies will be able to better demonstrate their climate commitments.
Practical implications of Bill C-59 for businesses
Bill C-59 will have a direct impact on companies operating in Canada.
Sectors affected
Certain industries will be particularly affected, including:
- Carbon-intensive industries, such as oil, gas and mining.
- Energy production and distribution sectors.
- Transportation and logistics companies.
Reporting and compliance requirements
Companies will have to adopt more rigorous practices, including :
- Implementing carbon footprints to measure emissions accurately.
- Drawing up emission reduction plans aligned with climate objectives.
- Participating in external audits to validate their data.
Risks and opportunities
- Risks of non-compliance: fines or restrictions could be imposed on companies failing to comply with the new rules.
- Opportunities: companies that act quickly can access green financing, strengthen their brand image and position themselves as leaders in climate innovation.
How can companies prepare for Bill C-59?
To meet and benefit from the requirements of Canada’s Bill C-59, companies need to adopt a proactive approach.
Key steps to effective compliance
- Assess the carbon footprint: carry out a comprehensive assessment to identify the main sources of emissions.
- Define clear objectives: integrate reduction targets into business strategy.
- Invest in clean technologies: adopt solutions that reduce emissions at source. At WILL, we offer support for reductions (In Quebec).
Integrate the carbon market into their strategy
- Buy verified carbon credits: to offset residual emissions. All our carbon credits are VERRA verified and comply with Bill C-59.
- Support local projects: invest in initiatives aligned with Canada’s climate priorities, such as WILL‘s local carbon credits.
Seize green financing opportunities
Bill C-59 promotes access to public and private funds for energy transition projects. Companies can explore grants, soft loans or partnerships to finance their climate initiatives.
Conclusion: Acting today for a sustainable future
Bill C-59 redefines the rules of the game for business in Canada, turning climate challenges into strategic opportunities. By adopting compliant and innovative practices, companies can not only reduce their environmental impact, but also strengthen their market position.
The time to act is now. Understanding and anticipating the implications of Bill C-59 is essential if we are to remain competitive in a world in transition.
Do WILL carbon credits comply with Bill C-59?
Bill C-59 aims to strengthen the transparency and credibility of carbon credits in Canada, by aligning them with rigorous standards of quality and environmental integrity.
Will Solutions’ carbon credits comply with these principles, as they meet the following criteria:
- Reality and traceability: Each credit is associated with a measured GHG reduction, verified by a third party and traceable in a recognized registry (Verra and VCS).
- Complementarity: The Sustainable Community project offers an unprecedented turnkey access to the voluntary carbon market for SMEs. This provides a unique financial, operational, marketing and institutional incentive for the decarbonization of SMEs.
- Sustainability and integrity: Will Solutions ensures that its Sustainable Community carbon project (since 2013) complies with validated methodologies (Verra VM0018 verified methodology) and produces positive economic, environmental and social impacts in the project’s area of activity (Quebec).
Article author and editor
Raphaël Pittavino-Varitto
Digital Marketing & Communications Manager