KPMG PRI – Verification

KPMG PRI – Verification

Business implications of Ontario’s climate action plan

KPMG PRI – Verification

Background: The government of Ontario is proposing to implement the Climate Change Mitigation and Low-Carbon Economy Act (the Bill). The Bill intends to establish a long-term framework for climate action. Amongst others, it provides a foundation for Ontario’s carbon cap and trade program and will provide support to achieve Ontario’s greenhouse gas (GHG) reduction targets of 37 percent below 1990 levels by 2030 and 80 percent by 2050. The carbon cap and trade program is expected to be in place by January 1, 2017.

In light of these changes the already existing Ontario Greenhouse Gas Emissions Reporting Regulation has been amended and these amended requirements will apply to calendar year 2016. Reporters will have until June 1, 2017 to submit their annual GHG report. Any required third party verifications are required to be completed by September 1, following the year-end.

Three questions to determine key implications for your business:

1. Does your company fall into one or more of the mandatory reporting requirements that are applicable now? Key pointers are if your company:

  • has annual GHG emissions equal to or greater than 10,000 tonnes CO2-equivalent*
  • imports electricity (>0 MW)
  • supplies more than 200 litres of petroleum products

2. Does your company have an obligation to have the reported information verified by an accredited third party verifier? Key pointers are if your company:

  • has annual GHG emissions equal to or greater than 25,000 tonnes CO2-equivalent*
  • imports electricity (>0 MW)
  • supplies more than 200 litres of petroleum products

3. Has your company prepared a strategic approach to the carbon cap and trade? The carbon cap and trade system will effectively transform GHG emissions reporting in Ontario from a disclosure focus to regulated emission targets, creating:

  • the opportunity to generate a reduction in costs and create tradable assets through reducing emissions
  • the risk of increased costs and reduced business competitiveness for organizations that do not successfully reduce emissions
  • increased need for accurate and timely GHG reporting to support both regulatory reporting and business decision making

Carbon project validation and verification services:

1. Readiness assessment:

  • confirming your understanding of the GHG reporting requirements
  • reviewing your approach to collecting and reporting data
  • assessing the design and implementation of relevant controls
  • identifying potential reporting challenges and required fixes

2. Verification:

  • performing verification of annual GHG emissions
  • multi-disciplinary teams involving engineering and audit practitioners
  • a two-phased approach that identifies reporting challenges early on providing additional time to address these challenges prior to report submission
  • a risk focused verification approach to ensure effort is focused on those areas where it is most needed in order to provide a more efficient verification

KPMG PRI facts and contact information:

  • KPMG Performance Registrar Inc. is an AINSI accredited 3rd party verifier (Accreditation ID 0746)
  • KPMG has an established track record in regulated GHG verification in Ontario, Alberta, BC, and Québec

We respectfully acknowledge that KPMG offices across Turtle Island (North America) are located on the traditional, treaty, and unceded territories of First Nations, Inuit and Métis peoples.

© 2024 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

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