What is CIIP? An FAQ for the CleanBC Industrial Incentive Program

As the CleanBC Industrial Incentive Program (CIIP) continues to support emissions reductions and industrial competitiveness in British Columbia, we are sharing important information about the program before anticipated updates to the program in May. 

What is it?

British Columbia's CleanBC Industrial Incentive Program (CIIP) is a government initiative that aims to reduce emissions and increase industrial competitiveness by providing incentives for cleaner industrial operations that meet emissions benchmarks. The program is part of the larger CleanBC Program for Industry, which applies to most large industrial operations that report their emissions under the Greenhouse Gas Industrial Reporting and Control Act (GGIRCA).

How does the program work?

Emissions intensity benchmarks have been set for the majority of the industry sectors in British Columbia. The incremental carbon tax paid by large industry above $30 per tonne of carbon dioxide equivalent (CO2e) funds the CIIP program. If a facility's emissions intensity of production is at or below the established benchmark, it may be eligible for a payment equal to 100% of the incremental carbon tax paid in the previous year. If the emissions intensity is above the benchmark but still below the eligibility threshold, the facility may receive a partial incentive payment.

Is it mandatory? 

Reporting to BC CIIP is optional. Facilities with emission intensity lower than the sector’s threshold are encouraged to apply and receive incentive payments back out of the incremental carbon tax.

Who is eligible?

To be eligible for the CIIP program, an industrial operation must meet the following criteria:

• Emits more than 10,000 tCO2e, excluding biomass combustion
• Has taken all reasonable steps to comply with the Greenhouse Gas Industrial Reporting and Control Act (GGIRCA)

Ineligible sectors for the program

*The NAICS code 211110 is not in the list, hence eligible for CIIP
Note: The 10,000 emission is across all facilities the operator operates. For example, if a company has 12 facilities that each emit 1,000 t CO2e, then it is eligible, since the sum is 12,000 tCO2e.

What information is required to submit? 

There are two required application components for CIIP:

• Submit the facility’s GHG emissions report by May 31 through the SWRS system
• Submit the facility’s CIIP application by June 30 through the CIIP Web Application.
  
  *If required, submit the verification statement regarding the product data via email to GHGRegulator@gov.bc.ca

What are the financial implications?

There are no financial implications. At best, the facility will receive a partial or 100% of the incremental carbon tax back. If the facility is above the threshold, the facility will receive no payments.

How can my organization apply? 

The four main components of the submission include: 

1. Administrative Data
2. Onsite Emissions
3. Fuel Amounts
4. Production & Emission Allocation

    Note: The first three are pre-filled from the emission report submitted through SWRS

    Refer to this document for guidance for completing the CIIP application for the Oil and Gas Industry.

How much payment can I receive? 

The payment is the portion of the incremental carbon tax that is returned to facilities based on their emissions performance in the reporting period.  

Incentive Payment = Incentive ratio x Incremental carbon tax 

• The carbon tax rate per tonne of CO2e is based on the type of fuel used.  
• The incentive ratio depends on how close the emission intensity is to the benchmark  

If a facility's emissions intensity of production is at or below the established benchmark, it may be eligible for a payment equal to 100% of the incremental carbon tax paid in the previous year. If the emissions intensity is above the benchmark but still below the eligibility threshold, the facility may receive a partial incentive payment.  

Payment structure:

What is required for verification?

Applicants must have their emission report verified by an accredited third party verification body in accordance with the Greenhouse Gas Emission Reporting Regulation (GGER)

• CIIP applicants that emitted > 25,000 tonnes of CO2e, not including reporting-only emissions in the current or any past three reporting periods
• CIIP applicants who have been required to have their emission report verified within the past three reporting periods
  
  *If a facility emits less than 25,000 tonnes of CO2e, then verification is not required.
  
  Note: A verification body will not provide a verification statement if the aggregate effect of errors in an emission report result in a misstatement of greater than the lesser of 1,000 tCO2e or 1% of the operation’s total emissions, not including reporting-only emissions.

Common mistakes: 

• The legal organization name and the corporate organization name register must match between SWIM & BC CIIP