Dawson Creek Carbon Fund
The City of Dawson Creek is committed to implementing emission reduction projects that will minimize their carbon liability prior to purchasing offsets to achieve carbon neutrality.
The establishment of the Carbon Fund has allowed the City to put a price on their corporate carbon that is then made available to implement corporate and community emission reduction projects, with corporate emission reduction projects given first priority. These reductions are intended to help reduce the number of offsets the City purchases each year to achieve carbon neutrality.
Project Summary
The City of Dawson Creek’s Carbon Fund (the Fund) is supporting the City’s Climate Action Charter commitments, including the goal to achieve corporate carbon neutrality by 2012. Approved by Council in June 2011, the Fund is established through the Dawson Creek Carbon Fund Policy, which allows the City to put a price on their corporate carbon emissions and then reinvest those funds back into projects that will reduce greenhouse gas emissions. Any corporate emissions that are remaining at the end of each year will be counterbalanced through the purchase of offsets, which are financed separately from the Fund. The City is committed to making every effort to implement feasible emission reduction projects before relying on offset purchases to achieve corporate carbon neutrality.
Energy Savings/GHG reductions
Because the Fund has been established to invest in a range of emission reduction projects, it is difficult to predict the specific amount by which corporate emissions will be reduced within the City. The Fund policy does, however, establish a number of criteria for the selection of projects including the requirement that emission reductions from projects are real, measurable and permanent. The identification of potential projects is underway, and first priority will be given to those that reduce the City’s corporate greenhouse gas emissions.
The City of Dawson Creek’s Carbon Fund allows the City to put a price on their corporate carbon emissions and then reinvest those funds back into projects that will reduce greenhouse gas emissions.
Business case
The City initially established a charge of $100 per tonne of corporate GHGs produced annually. The investment is scheduled to increase by whichever is the greater of either $5 per year, or in accordance with increases in the BC Carbon Tax. The Fund is partially financed partly by grants received through the Climate Action Revenue Incentive Program (CARIP) with the balance being made up through contributions from the City’s general funds. The Fund currently holds an estimated $360,000.
Co-Benefits
- Supports investments in corporate and community projects
- Helps to drive the local green economy
- Assists in insulating the City from rising energy prices
Lessons learned
Three key lessons can be drawn from the establishment of the Carbon Fund:
Political support is critical
Political support is critical to ensuring that any public perception that the Fund may result in ‘paying extra’ to achieve carbon neutrality is managed, and that the Fund is seen as demonstrating the City’s commitment to climate action.
Clear and consistent communication can build support
Clear and consistent communication with Council on the opportunities that can be derived from Fund investments in local government infrastructure can assist in building support and interest.
Develop processes to ensure consistency and transparency
As significant resources accumulate, ensuring that there is a process in place to select projects will ensure consistency and transparency in the use of the Fund.
Local government contact
Kevin Henderson
Director of Infrastructure & Sustainable Development, City of Dawson Creek
T: 250-784-3622
E: khenderson@dawsoncreek.ca