Using theoretical foundations to design and implement internationally transferred mitigation outcomes (ITMO) to offset domestic emissions in Canada’s LNG industry

The Paris Agreement of 2015 that went into effect in November 2016, outlines a framework for a new market mechanism, internationally transferred mitigation outcomes (ITMOs) as one of the initiatives to reduce carbon emission, that could incentivize countries to reduce their greenhouse gas (GHG) emissions. ITMOs enable countries to transfer emissions reduction credits between countries to efficiently find those areas where emissions could be reduced most efficiently and cost-effectively, thus resulting in greater net reductions globally. However, we still lack a coherent theoretical foundation for how ITMOs can be created and implemented, and it is therefore unclear how Canadian companies and the Canadian economy might benefit from this new market mechanism. In this project, a Postdoctoral intern will first develop a theoretical framework for ITMO creation, and apply this to study how Canadian liquified natural gas (LNG) producers could benefit from ITMO implementation. This includes understanding new carbon accounting methods, relevant technologies, and analyzing the business case and potential returns on investments into offsetting carbon emissions under different scenarios.

Faculty Supervisor:

Harish Krishnan;Sanjith Gopalakrishnan

Student:

Partner:

FortisBC Energy Inc

Discipline:

Business

Sector:

Utilities

University:

The University of British Columbia

Program: