On August 6, 2025, the Province of British Columbia finalized and published the Carbon Capture and Sequestration Protocol (CCSP) under the provincial greenhouse gas offset framework, opening the door for eligible projects to generate B.C.-issued offsets for the permanent storage of captured carbon.
The protocol’s development involved two consultation periods from September to December 2023 and from February to March 2025, with input from industry, technical experts, and stakeholders incorporated before the protocol’s final approval.
What the Protocol Covers
The CCSP applies to projects that sequester captured carbon in B.C. by either:
- Geologic Storage – Injecting and permanently storing captured carbon in a reservoir within a designated storage complex; or
- Mineralization / Chemical Conversion – Transforming captured carbon into a stable compound or form capable of permanent storage.
Projects that meet the protocol’s requirements can quantify and claim both:
- Emission Reductions – Avoided CO₂ emissions that would otherwise be released; and
- Removal Enhancements – Net negative emissions from the permanent storage of atmospheric or process CO₂.
Where It Fits in B.C.’s Offset System
With this addition, B.C. now has three approved protocols, with the fuel switching protocol currently under review. The province also recently had a consultation on the refrigerants offset protocol.
- Forest Carbon Offset Protocol
- Methane from Organic Waste Protocol
- Carbon Capture and Sequestration Protocol
- Fuel Switch Offset Protocol - under review
Credits generated under the Forest Carbon Offset Protocol are also eligible as Recognized Units under the Federal Output-Based Pricing System (OBPS). It’s important to note that B.C.’s offset system applies across the province, not solely under the B.C. Output-Based Pricing System (B.C. OBPS). Therefore, credits generated through approved provincial protocols are not automatically eligible for B.C. OBPS compliance. B.C. OBPS eligibility is determined by the offset vintage, as eligible offsets must fall within a 3-year vintage window. Therefore, offsets eligible for the 2024 compliance year must be a 2021 vintage or later. At the time of writing, approximately 5 million credits in the B.C. carbon registry are available for 2024 compliance, according to provincial data.
Market Implications
Projects that meet the standards and criteria for the CCSP now have the opportunity to generate credits, improving supply in the provincial offset program. For offset buyers, this expands potential sourcing options and may improve market liquidity. However, early supply will likely be limited given the long development timelines of carbon capture projects. While the overall supply of the offset market may grow with the addition of this protocol, credit usage limits for B.C. OBPS compliance are reduced annually from 50% for 2024 compliance, to 40% for 2025 compliance, and 30% through to 2030. In other words, the portion of an obligated entity’s B.C. OBPS compliance obligation that can be met using credits becomes lower over time. ClearBlue provides analysis on drivers of credit supply and demand in the B.C. OBPS through our Supply and Demand reports. We will continue updating our balances and forecasts as the program evolves.
The federal government has signalled an upcoming federal carbon pricing benchmark review in 2026 to strengthen the stringency and consistency of industrial carbon pricing. This will put pressure on provinces operating parallel programs, such as the B.C. OBPS, to align with the federal benchmark. ClearBlue recently released a report on the changing landscape of industrial carbon pricing in Canada, providing timely insights into this important upcoming policy development.
For more information on the B.C OBPS and potential implications of the 2026 federal benchmark review, please reach out to a member of our team. ClearBlue will continue to monitor these developments and provide updates as needed.