Star Metro - Ostrom Climate Responds to Budget 2025 and COP30

Highlights

• Budget 2025 strengthens Canada's long-term carbon pricing system, improving certainty for credit markets and supporting demand for high-integrity offset projects.

• Government alignment with COP30 Shared Principles enhances predictability in global carbon markets.

• Creation of an Indigenous Advisory Council and progress toward a Pan-Canadian OBPS support expanded Indigenous-led climate projects - an area where Ostrom Climate has expertise and partnerships.

• Conclusion of the 2 Billion Trees program increases reliance on private carbon finance.

• New Canadian sustainable finance taxonomy and Sustainable Bond Framework improve capital access for nature-based carbon removals and transition projects.

"Budget 2025 and the momentum coming out of COP30 signal a more aligned and investable future for Canada's carbon markets. The federal focus on integrity, long-term pricing, and Indigenous leadership reinforces the foundations the industry needs to scale and positions Ostrom Climate to continue delivering high-quality climate solutions across the country."

- Navdeep Dhaliwal, CEO, Ostrom Climate Solutions

Budget 2025 introduces measures that strengthen Canada's carbon pricing system, support high-integrity climate finance, and advance Indigenous leadership in the transition to a net-zero economy. Further support for nature-based solutions would strengthen Canada's climate strategy, but initiatives across industrial carbon pricing, critical minerals, and sustainable finance advance a clearer, more investable national climate framework.

Ostrom Climate remains committed to developing high-integrity carbon projects and transparent market mechanisms that drive measurable climate, biodiversity, and community benefits across Canada.

Strengthening Industrial Carbon Pricing & Offset Markets

Ostrom Climate welcomes the federal government's commitment to strengthening Canada's industrial carbon pricing system as outlined in the budget's Climate Competitiveness Strategy. A well-designed, predictable carbon pricing framework is essential for sustained decarbonization and a credible carbon market.

The development of a post-2030 carbon pricing trajectory is a key step for long-term market certainty. A transparent, multi-decade price signal aligned with Canada's 2050 net-zero target supports investment planning and encourages major low-carbon investments.

Enhancements to the national benchmark and backstop mechanism will improve consistency and fairness across provincial and territorial systems. Harmonizing or linking provincial carbon credit markets strengthens overall market integrity and liquidity, benefiting both compliance and voluntary markets.

The British Columbia OBPS demonstrates that strong policy design can create real market value by generating demand, increasing compliance participation, and attracting investment. Budget 2025 positions Canada to extend that success nationally, laying the groundwork for a more liquid, credible, and scalable carbon market.

Ostrom Climate also supports the continued use of Carbon Contracts for Difference (CCFDs) through the Canada Growth Fund, which provides a floor price for carbon capture credits. This stabilizes large-scale emissions reduction and removal projects, de-risks investment, and reinforces confidence in the carbon pricing system. Equivalent support for nature-based solutions remains absent, despite their scalable climate and co-benefits. By focusing federal backing solely on industrial carbon capture, the government risks overlooking a vital sector for achieving Canada's net-zero goals.

Together, these measures build momentum for broader climate policy and expand opportunities for Indigenous leadership.

Indigenous Advisory Council & the Path Toward a Pan-Canadian OBPS

Ostrom Climate welcomes the establishment of an Indigenous Advisory Council within the Major Projects Council. Indigenous leadership and knowledge are essential to designing and implementing a Pan-Canadian Output-Based Pricing System (OBPS), ensuring both equity and long-term system success.

A truly effective OBPS requires active collaboration with Indigenous communities, both as partners and project proponents. These communities are leading climate solutions across the country, and their stewardship of lands, waters, and resources positions them as essential partners in shaping protocols, standards, and governance.

Ostrom Climate looks forward to greater clarity on how Indigenous engagement will be integrated into OBPS expansion and implementation. Ensuring Indigenous leadership in protocol development and crediting mechanisms is critical for environmental integrity and system legitimacy.

The Conclusion of the 2 Billion Trees Program

Budget 2025 also marks the conclusion of the 2 Billion Trees program. While this program played a significant role in accelerating reforestation across Canada, its conclusion changes the landscape for nature-based climate projects.

Ostrom Climate's experience in developing high-integrity forest carbon projects positions the company to continue supporting scalable, credible nature-based solutions. The evolving funding environment reinforces the value of robust carbon finance expertise, and Ostrom Climate remains equipped to ensure these projects deliver measurable climate, biodiversity, and community benefits.

Strategic Investment in Critical Minerals

With the 2 Billion Trees Program's conclusion, departmental resources can more directly support the government's Climate Competitiveness Strategy, including critical minerals development.

Budget 2025 proposes a $2 billion investment over five years to establish the Critical Minerals Sovereign Fund, providing strategic support through equity, loan guarantees, and offtake agreements. The expansion of the Critical Mineral Exploration Tax Credit to additional minerals further strengthens domestic supply chains.

These investments are essential for clean energy technologies, renewable infrastructure, and advanced manufacturing - sectors that drive demand for high-integrity offsets and rigorous GHG reporting. Ostrom Climate's expertise in carbon project development, verification, and reporting supports these emerging markets while reinforcing the integrity of Canada's climate finance ecosystem.

Mobilizing Capital Through a Canadian Taxonomy & Sustainable Bond Framework

Budget 2025 introduces an important step in mobilizing capital through a Canadian sustainable investment taxonomy and Sustainable Bond Framework. These initiatives unlock private investment by providing clear, credible definitions for "green" and "transition" activities.

A made-in-Canada taxonomy, expected by 2026, will guide investors and market participants using consistent criteria for identifying sustainable investments. The Sustainable Bond Framework will enable green and transition bond issuances aligned with the taxonomy, broadening financing options for clean growth.

For Ostrom Climate, a credible taxonomy strengthens the broader carbon market ecosystem. Clear definitions improve capital access for nature-based and transition-aligned projects, ensuring land-based removals are recognized alongside industrial decarbonization.

Efforts to harmonize climate disclosure standards across jurisdictions enhance transparency and comparability, supporting credible corporate climate strategies and reinforcing the importance of rigorous measurement, reporting, and verification - areas where Ostrom Climate provides trusted expertise.

Growing International Alignment on High-Integrity Carbon Markets at COP30

Global support for high-integrity carbon markets accelerated at COP30, where 11 governments formally endorsed the Shared Principles for Growing High-Integrity Use of Carbon Credits. Countries including Germany, Indonesia, the Netherlands, and South Africa also welcomed the effort, signaling broad support for harmonized, transparent market infrastructure.

This momentum reflects a growing global consensus: high-integrity carbon markets are crucial for mobilizing private capital, accelerating decarbonization, and expanding economic opportunity. With governments committed to supportive policies, data standardization, and stronger recognition for corporate action, the Shared Principles provide a framework for credible investment in high-quality carbon credits.

Greater policy alignment reduces uncertainty, enhances trust, and establishes clearer conditions for companies investing in carbon markets which is exactly the clarity the private sector needs.

For Ostrom Climate, this represents both validation and opportunity. The emphasis on integrity, transparency, data quality, and Article 6 alignment mirrors the standards embedded in the Company's project development and carbon management services. As expectations converge internationally, Ostrom Climate is well-positioned to guide clients through the evolving landscape with high-quality credits and advisory expertise.

"Budget 2025 and Canada's endorsement of the Shared Principles demonstrate recognition of the important role high-integrity carbon projects play in financing clean growth as public budgets tighten. These actions create a more supportive and predictable environment for originating and developing new project opportunities, encouraging greater investment and innovation. Together, they signal clear momentum toward unlocking the full potential of Canada's high-integrity carbon markets."

- Jack Satzewich, Director, Carbon Intelligence Services, Ostrom Climate

"Canada's strength will be defined by its ability to align climate ambition with market design, since a credible carbon pricing system supported by long-term policies and international alignment gives businesses the certainty needed to invest, innovate, and compete globally on carbon. The BC OBPS has already shown that a well-designed system can drive real market demand and compliance activity - and if adopted federally, it could lay the foundation for a liquid, high-integrity Canadian carbon market. COP30 confirmed that high-integrity carbon markets are now a global priority, and Budget 2025 signals that Canada is ready to lead by building a trading system that mobilizes capital, attracts investment partners, and rewards genuine decarbonization. To succeed, Canada must align OBPS frameworks, embed Indigenous leadership, enhance taxonomies, and create financing tools that support both nature-based and industrial climate solutions"

- Jack Mann, Sales, Trading & Business Development Coordinator, Ostrom Climate

About Ostrom Climate Solutions Inc.

Ostrom Climate is one of North America's leading providers of carbon project development services, net-zero climate solutions, and carbon credit marketing. Over the past 12 years, Ostrom Climate has validated and verified forest carbon projects globally for voluntary and regulated markets, having developed 16 million acres of forest land for conservation and monetized over 10 million carbon credits. Based in, B.C., Canada, the Ostrom Climate team has a global reach, has worked with over 200 organizations globally, including Fortune 500 companies, managed projects in partnership with indigenous stakeholders and has extensive on-ground experience in emerging markets.

Ostrom Climate is focused on developing high-quality carbon projects that have a positive impact on the environment, local communities and biodiversity. Ostrom Climate is publicly listed on the TSX Venture Exchange (COO) and the Frankfurt Stock Exchange (9EAA).

Please visit us at www.ostromclimate.com.

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For more information regarding the Company, please contact:

Navdeep Dhaliwal
Chairman & Chief Executive Officer
Ostrom Climate Solutions Inc.
4111 Hastings Street #380, Burnaby, BC V5C 2J3, Canada
Email: [email protected]

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SOURCE: Ostrom Climate Solutions Inc.

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F.Davis--SMC