BC OBPS Program Update: Exit Options for facilities under 10,000 tonnes of CO₂e

Published On: July 10, 2025Categories: News & Events

Recent changes to British Columbia’s Output-Based Pricing System (OBPS) present an important opportunity for certain facilities to reduce regulatory burden and streamline their carbon compliance obligations.

Under amendments to the Greenhouse Gas Emissions Reporting Regulation, two categories of facilities may now voluntarily withdraw from the OBPS earlier than originally permitted, with potential cost savings and administrative benefits starting in the 2025 compliance year.

Who is eligible to exit?

Facilities that meet either of the following criteria may now qualify for withdrawal:

  • Voluntary Participants: Facilities that opted into the OBPS but have consistently emitted less than 10,000 tonnes of CO₂e per year
  • Former Large Emitters: Facilities that previously exceeded the 10,000-tonne threshold but have since fallen below it

What has changed?

Previously, voluntary participants could not exit until the end of a full compliance year (December 31, 2025). Under the recent amendments, eligible facilities may now exit effective as early as April 1, 2025, aligning with the elimination of BC’s consumer carbon tax.

  • Voluntary Participants (consistently below the threshold) can exit immediately, effective retroactively on April 1, 2025.
  • Former Large Emitters can do one of the following:
    • Exit effective Jan 1, 2025, and pay the carbon tax until April 1, 2025.
    • Exit effective Dec 31, 2025, and pay the B.C. OBPS compliance charge for the reporting period.

Each path carries distinct reporting, cost, and strategic implications.

Key Considerations

While this regulatory change introduces new flexibility, it’s not without risk. Facilities should carefully assess:

  • Partial-year compliance obligations and how they align with BC’s GHG reporting requirements
  • The appropriate exit mechanism, which varies depending on how the facility originally entered the OBPS
  • The impact on surplus credits or offset strategies, particularly for those with banked units
  • Whether voluntary exit now could limit re-entry or access to future credit generation opportunities

How SCV Consulting Can Help

SCV Consulting has a team of professional engineers and GHG specialists with experience supporting OBPS compliance, emissions quantification, and credit strategy. We are available to support BC clients to:

  • Assess whether exiting the OBPS is beneficial based on emissions profile and timing
  • Estimate partial-year compliance obligations for 2025
  • Prepare documentation for the opt-out request to the BC regulator
  • Support long-term credit and compliance strategy post-withdrawal

We understand the nuances of carbon pricing frameworks across Canada and work with facilities to reduce cost, risk, and complexity in GHG reporting and compliance.

Need support?

If you’re unsure whether your facility qualifies for early exit, or if you’d like to discuss how these changes could impact your carbon strategy, we’d be happy to help. Visit the Contact Us page to get in touch.

Learn More

To learn more, you can review the notice from the province here.