Design Principles for B.C.’s Output- Based Pricing System - Comments and recommendations

We generally support the proposed system, and offer the following recommendations: • Alignment with climate targets: The stringency of the OBPS should be designed to achieve emissions reductions in line with B. [...] We recommend that any hydrogen plants producing hydrogen from fossil fuels should be considered as part of the oil and gas sector and subject to relevant new policies and regulations including the OBPS and the Net-Zero New Industry policy. [...] Carbon revenues Given the initial stringency of the OBPS as proposed in the backgrounder, the B. [...] There is already a forum for investing in the development, trial, and deployment of projects that reduce GHG emissions from large industrial operations through the CleanBC Industry Fund (CIF), although more details are needed on how the CIF will evolve to support the new OPBS. [...] The Regional Tables identified that clean electricity will be essential for both decarbonizing existing industries and supporting new sectors that are essential to the energy transition, including green hydrogen or critical minerals.9 As such, a portion of the revenues from the OBPS should be allocated to supporting the clean economy, through investing in clean electricity, to generate additional.