Voluntary Carbon Standard Association Accepts Bennett Jones' Submission and Amends Its Rules

    TORONTO, July 23 /CNW/ - Bennett Jones LLP welcomes the announcement
today by the Voluntary Carbon Standard Association (VCSA) outlining changes in
the rules with respect to the creation of Voluntary Carbon Units (VCUs) in
countries named in Annex B to the Kyoto Protocol ("Annex B Countries") based
on criteria defined by the VCSA Board. Under the new rules, Canadian-based
projects can now freely apply to use the VCS and issue VCUs without arranging
for the Government of Canada to cancel an equal number of Kyoto Protocol units
(called Assigned Amount Units or AAUs).
    The change will provide new incentives for greenhouse gas (GHG)
mitigation actions, thereby benefitting the environment by supporting
voluntary efforts to create GHG emission reductions and sequestrations in
Annex B Countries under certain criteria, with Canada being the first approved
case. The Voluntary Carbon Standard is a leading standard in the burgeoning
market for GHG voluntary offsets.
    On behalf of some of its clients, Bennett Jones made submissions to the
VCSA requesting a change to Section 5.2.2 of the VCSA rules which, as then
drafted, required any projects hosted by an Annex B country that wanted to be
able to use the VCS standard to issue VCUs to ask the national government of
that country to give up an equivalent entitlement to Kyoto Protocol units
(AAUs).
    As Canada had ratified the Kyoto Protocol, project developers in Canada
could not use the VCS, despite the Canadian government making it clear that it
did not intend to meet the GHG emission limitations imposed by the Kyoto
Protocol. This created a situation where VCUs could be created in the United
States, but not across the border in Canada, under essentially identical
circumstances, depriving Canadian offset developers of the ability to access
the portion of the global GHG market where VCUs are a well recognized and
widely accepted commodity.
    The VCSA responded to the submissions made by Bennett Jones and has
specified criteria which it will apply to determine when Section 5.2.2 will
not apply and, as a result, when the VCSA will not require AAUs to be retired
by the national government of the Annex B country hosting the project. In
addition, the VCSA accepted Bennett Jones' submission that Canada should be
excepted from the previous application of Section 5.2.2 of the VCSA rules and
has announced that Canada is the first (and so far only) Annex B jurisdiction
in which GHG emission reductions or sequestrations that otherwise meet the VCS
standard can be freely issued without government cooperation.
    The Bennett Jones Climate Change and Emissions Trading Group's efforts
were lead by Andrei Marcu, its Senior Climate Change Business Advisor, with
the support of Gray Taylor, the Chair of the Climate Change and Emissions
Trading Group. Andrei Marcu's role built upon his long experience in emissions
trading and related matters for both voluntary and compliance matters. Andrei
Marcu stated, "This ruling will allow Canadian project developers the
opportunity to tap the global carbon finance market and also integrate Canada
in the international carbon market, which is critical given the important role
Canada has in global energy markets."
    Gray Taylor stated, "The addition of Andrei Marcu's vast international
experience and capability to our world-class climate change practice improved
our ability to tackle extraordinarily difficult assignments like this one in a
sophisticated and creative way. We believe the changes made by the VCSA will
benefit our clients both in and out of Canada as well as Canadians generally
and, most importantly, the atmosphere."
    Says Hugh MacKinnon, Chairman and CEO of Bennett Jones, "Our cutting edge
climate change practice has achieved another first. All of us in the firm are
pleased with this major achievement for our clients and our Climate Change and
Emissions Trading practice group.
    "On behalf of one of Bennett Jones' clients, Emission Credits
Corporation, Robert Coulter, the Chief Executive Officer and former Aboriginal
leader, stated, "This is a truly remarkable achievement which validates our
efforts to produce voluntary reductions in Canada for use outside of
compliance systems. We are truly appreciative of Bennett Jones' efforts and
accomplishment. We look forward to creating many VCUs in the near future.
    "Dave LaBarre, Executive Vice President, Blue Source LLC, another Bennett
Jones client, added, "Blue Source was pleased to engage with Bennett Jones who
drove this initiative which will allow our clients to create VCUs from
Canadian emission reduction projects. We are encouraged to now offer multiple
outlets for voluntary offsets which will bring increased value to our customer
base."

    About Bennett Jones LLP:

    With over 350 lawyers in four offices, Bennett Jones is a premier
Canadian and international business law firm providing integrated legal and
strategic business services across all areas of business law. The firm's
practice spans the issues relevant to business, including the provision of
climate change policy advice and the planning and implementation of emissions
trading transactions where the firm is recognized as a leader both in Canada
and around the world. Bennett Jones deals with matters both in and out of
Canada building on core legal and advisory expertise in the areas of energy
and natural resources projects and transactions, mergers and acquisitions,
corporate finance and banking, corporate governance, bankruptcy and
restructuring, competition, climate change and environmental, regulatory
issues, major capital projects, international trade and investment,
technology, tax, litigation and intellectual property.

For further information: Andrei Marcu, Senior Climate Change Business
Advisor, Bennett Jones LLP, T: (416) 567-0447 (mobile),
marcua@bennettjones.com; Gray Taylor, Chair, Climate Change and Emissions
Trading Group, Bennett Jones LLP, T: (416) 777-5769, taylorg@bennettjones.com