Policy Statement
Except as contemplated by this policy, the Town shall not participate in voluntary carbon offset or carbon credit markets as either a purchaser or seller. Participation in carbon credit programs shall be limited to regulated compliance-based programs that have been authorized by Council and are consistent with applicable legislative, regulatory, or strategic requirements. Any future consideration of carbon offsets, carbon credits, or similar market-based mechanisms outside of regulated compliance programs shall be subject to appropriate corporate governance, risk assessment, and Council direction prior to implementation.
Purpose
The purpose of this policy is to establish a consistent corporate approach to the management and use of carbon offsets and carbon credits by the Town of Oakville. The policy provides direction and controls to ensure that the Town's climate action efforts remain focused on achieving verifiable and measurable emissions reductions within its own operations while managing potential financial, reputational, and governance risks associated with carbon markets. This policy further clarifies the Town's position regarding participation in carbon offset and carbon credit programs, defines the circumstances under which participation may be considered, and ensures that any future decisions involving carbon market mechanisms are supported by appropriate oversight, accountability, and Council authorization.
Scope
This procedure applies to all staff at the Town of Oakville:
- All Town-owned and operated facilities
- Fleet and transportation operations
- Corporate energy use
- All other sources of corporate Greenhouse gas (GHG) emissions under municipal control
Corporate Policy on Carbon Credit Transactions
- No Town department shall, initiate, negotiate, purchase, sell, transfer, or otherwise transact in carbon credits or carbon offsets with carbon credit vendors, brokers, registries, or market platforms on behalf of the Corporation.
- No carbon credit activity shall be undertaken for the purpose of voluntary compliance, revenue generation, or environmental claims.
The Town of Oakville adopts a “reduce first” approach to emissions management. Carbon offsets shall only be considered as a last resort, after all technically feasible, financially reasonable, and operationally viable measures to reduce corporate GHG emissions have been fully explored and implemented. Offsets are not to be used as a substitute for decarbonization, but strictly as a limited tool to address residual emissions that cannot be eliminated.
References and related documents
Energy Conservation and Demand Management Plan (pdf)
Responsibilities
This policy will be reviewed periodically by Corporate Strategy and Government Relations, or designate, to ensure ongoing alignment with the Town’s municipal net zero commitments, emerging best practices, and applicable legislation. The policy will be reviewed at least every five years, or more frequently as required, and any recommended revisions will be brought forward to Council for consideration.