Ontario capandtrade power advisory commentary march 11 2016. Californias cap and trade program is directly benefitting residents through climate. The ontario government has indicated that it intends to link ontario s cap and trade program with the existing cap and trade programs in quebec and california. As with a carbon tax, a cap and trade program does not directly require an individual emissions source to reduce its emissions. In this report, we provide background information on californias ghg policies and the role of cap and trade.
There are two main approaches to putting a price on carbon. Carbon cap and trade impacts of ontarios proposal for business leaders jeffrey salt 912016 the purpose of this document is to provide an introduction to fundamental concepts of what cap and trade is and how business leaders should prepare for its implementation. The cap trade system creates a new knowledge base for consumers because certain products may not be in compliance with the laws. Ontario remained a member until the province officially repealed its regulation regarding a cap and trade program on july 3, 2018. Peter weltman, ontario s financial accountability officer, presents the findings of a report on the costs of cap and trade cancellation at queens park on oct. Few precise details of the proposed cap and trade system have been revealed publicly. Cap and trade financial accountability office of ontario. The cap and trade program is a central part of ontarios solution to fight climate change. Pdf 38k ontarios compliance offset credits regulatory proposal dated november 15, 2016.
Ontarios cap and trade program is economywide and covers both process and combustion emissions. Putting a price on carbon is widely accepted as one of the most effective ways to reduce greenhouse gas1 ghg emissions. The newly elected ontario government announced on tuesday it would end the provinces cap and trade program, a policy designed to reduce greenhouse gas. Quebec quebecs capandtrade system for ghg emissions was introduced in 2012. The second common type of marketbased mechanism that has been used to reduce emissions is a cap and trade program. The news of ontario s impending withdrawal from the binational cap and trade program, after less than a year of partnership, has landed with a thud. As governments decide on how to address climate change, putting a price on carbon.
This program is only for nonparticipants of the ontario cap and trade program and covers up to 50% of projects that will reduce greenhouse gas ghg emissions. The government of ontario the province has introduced a cap and trade program to help achieve its targets for reducing greenhouse gas emissions. Cap and trade is good for ontarios economy in 2017, the first year of ontario s cap and trade program, the province added over 175,000 jobs1 o this increase represents a 2. Ontario s cap and trade legislation and regulations are based on the cap and trade program design of the western climate initiative wci. For regulation or program questions contact the cap and trade hotline at 916 3222037. California, ontario, quebec and oregon sb 1070 1 p a g e this chart was published in the california cap and trade program summary by the center for climate and energy solutions january. Final cap and trade program regulations were passed in november 2018.
Design principles for ontarios new capandtrade system. What you need to know about ontarios carbon market using a cap and trade program, including how it works and who is required to participate. Canadas ontario government scraps capandtrade program. In choosing to price carbon, ontario has committed to the most effective. Capandtrade program california air resources board. Enforcement and withdrawal under the californiaquebec and not.
The program sets a cap, or maximum limit, on the amount of greenhouse gas ghg emissions that can be released by large emitters in the province those that release more than 25,000 tonnes of. Quebec, california, ontario and british columbia create wci inc. Chapter 4 cap and trade environmental commissioner of ontario. Ontario announces results of first joint ontario, quebec, california cap and trade program auction proceeds helping households and businesses fight climate change. This income can be supplemented with carbon taxes in place that work with the cap trade system. The cap must be sufficiently aggressive to allow the province to meet or exceed its emissions targets 15 per cent below 1990 levels by 2020, 37 per cent by 203014 and 80 per cent below by 2050. Greenpeace canada submission to the ontario environmental. How cap and trade works environmental defense fund.
Bill 4, the proposed cap and trade cancellation act, does none of these things. Californias emissions from sources subject to the cap declined 10% between the programs launch in 20 and 2018. Sep 26, 2016 ontarios cap and trade legislation and regulations are based on the cap and trade program design of the western climate initiative wci. On april, 2015, the ontario government announced that it would create a cap and trade program. Carbon cap and trade impacts of ontario s proposal for business leaders jeffrey salt 912016 the purpose of this document is to provide an introduction to fundamental concepts of what cap and trade is and how business leaders should prepare for its implementation. Construction sector training standards ontario college of. Mar 03, 2016 the ontario ministry of environment and climate change moecc has also released two draft regulations. The ontario ministry of environment and climate change moecc has also released two draft regulations. The bill sets out the cap and trade cancellation act, 2018, which repeals the climate change mitigation and lowcarbon economy act, 2016 and provides for various matters related to the wind down of the cap and trade program under the cap and trade cancellation act, 2018, the government is required to establish targets for reducing the amount of greenhouse gas emissions in. Ontario s cap and trade program is economywide and covers both process and combustion emissions. May 25, 2016 on may 19, 2016, ontario regulation 14416, the cap and trade program cap and trade regulation, was issued, which provides details about the cap and trade p rogram.
Ontario put a price on carbon pollution through the cap and trade program. Ontario s cap and trade program began on january 1, 2017 and was a central part of the government of ontario s the provinces plan to achieve its greenhouse gas ghg emission reduction targets. Wci is a 501c3 nonprofit corporation which administers the shared emissions trading market between the american state of california and the canadian province of quebec as well as separately administering the emissions trading market of the canadian province of nova scotia. California capandtrade program, ontario capandtrade. Ontarios cap and trade program began on january 1, 2017 and was a central part of the government of ontarios the provinces plan to achieve its greenhouse gas ghg emission reduction targets. The ontario government has passed legislation to repeal the provinces cap and trade system, putting the final nail in the coffin of a program premier doug ford has long promised to scrap. Pdf 38k ontario s compliance offset credits regulatory proposal dated november 15, 2016. All future training and curriculum standards will reflect the former name.
Nova scotias cap and trade program sets a cap on the total amount of ghg emissions allowed in covered sectors in the province for the years 20192022 compliance period. For businesses effective july 3, 2018, we cancelled the cap and trade regulation and prohibited all trading of emission allowances. Ontario announces consultations on offsets credits regulatory proposal. On july 25, 2018, the ontario government introduced bill 4, referred to as the cap and trade cancellation act, 2018.
Politifact your guide to the capandtrade estimates. This session will offer insight on recent projects including the business case, approvals processes, and funding structures required to realize project success. Cap and trade is good for ontarios economy in 2017, the first year of ontarios cap and trade program, the province added over 175,000 jobs1 o this increase represents a 2. The retreat of californias largest emissions trading partner is a function of politics as much as policy. In addition to shared canada ontario programs, agriculture and agrifood canada aafc delivers federal programs under the partnership aimed at generating economic growth in the agricultural sector. A second linkage with ontario lasted 6 months before its new administration announced plans to end the provinces cap and trade program. What you need to know about ontario s carbon market using a cap and trade program, including how it works and who is required to participate. Apr, 2015 under a capandtrade system, a government sets a cap a limit on the amount of greenhouse gas emissions various industries can emit into the atmosphere. Jun 02, 2008 today theyre signing an accord that will create a system of carbon cap and trade. Pursuant to the joint carbon market, the three governments set emissions caps on their energy distributors and industrial emitters, and sold allowances that companies could purchase to comply with the regulations from 2017 to 2020. Paper cap and trade 3 may 25, 2016 2 cap and trade markets. Today minister of the environment, conservation and parks rod phillips announced details of legislation that would, if passed, formally end the cap and trade carbon tax era in ontario. Final capandtrade program regulations were passed in november 2018. The fundamentals of ontarios new cap and trade program are explained in appendix a.
The ministry of advanced education and skills development maesd has changed its name to ministry of training, colleges and universities mtcu. Evaluating the policy tradeoffs in arbs capandtrade. Canadian agricultural partnership the partnership ontario. Ontario announces results of first joint ontario, quebec. Bill 4, cap and trade cancellation act, 2018 legislative. Pressure from carbon price increases and cap declines combined with funding from cap and trade revenue are incentivizing innovative carbon reduction projects for ontario emitters. The government of ontario launched its cap and trade program this year as part of its plan to reduce the provinces impact on climate change. Ontario introduces legislation to end cap and trade carbon. Evaluation of ontarios cap and trade regulation yorkspace. Ontario introduces legislation to kill capandtrade. Columbia has a carbon tax, quebec and ontario have capand trade systems, and alberta has.
The climate change act and the cap and trade regulation establish the details of a cap and trade program for the purposes of. Although the preceding section explains the basic premise of a cap and trade system, a number of design parameters must be considered prior to the effective implementation of such a system. In our latest blog piece covering ontario s planned adoption of a cap and trade system that will be linked with the existing systems in quebec and california, we described some of the major recent developments in ontario and the united states to help put the provinces cap and trade efforts in context. For more information about these programs and how to access them, visit the aafc website. Compliance periods are three years long two years for the initial period. The ontario college of trades has been monitoring the recent development of the covid19 virus and the public health response. The cap and trade program is a central part of ontario s solution to fight climate change. The basics 1 introduction a cap and trade scheme also referred to as an emissions trading scheme is where a regulatory body sets an absolute aggregate cap e. Ontario introduces legislation to cancel the cap and trade. Yet the highprofile abdication of the provinces flagship environmental policy wont spare. Covered entities include oil refineries, power plants, natural gas and transportation fuel distributors, and other large sources of emissions. The hhi is a measure of the concentration of allowances purchased by winning bidders relative to the total sale of current. The moecc is designing its cap and trade program concurrently with its development of a 2016 climate change strategy and action plan. Ontario is also a party to the wci and has indicated its intention to link its own capandtrade and offset programs with those of california and quebec.
Included as part of the proposal is an appendix which presents. The income from credits can help to make this happen, even when a cap is in place. Ontario s first compliance period for cap and trade program until 31 december 2020 22 march 2017. Examining california and quebecs capandtrade systems. The program regulates the industry, power, heat buildings, and transport sectors and covers.
The programs enforceable compliance obligation began on 1 january 20. The cap and trade program in which companies could buy and sell allowances with counterparts in ontario, quebec and california was expected to set a. Given ontarios desire to link with the capandtrade markets in quebec and california, their systems will likely play a significant role in dictating the approach ontario takes. Ontario s cap and trade program was linked to california and quebec under the western climate initiative. It also provides administrative, technical and infrastructure services to support.
Cap and trade is good for ontarios economy why cap and. For ontarios capandtrade system to be effective, the total. The two provinces hope that this will eventually be expanded to include all canadian provinces. Report of the board regulatory framework for the assessment. Aug 08, 2016 ontario manufacturers not participating in the ontario cap and trade program may be eligible for an alternative program launching in october 2016 called the cme smart green program. Canada quebec capandtrade system general information summary status. Under cap and trade, the province would sell allowances to emit greenhouse gases. The newly elected ontario government announced on tuesday it would end the provinces cap and trade program, a policy designed to reduce greenhouse gas emissions, fulfilling one of premier doug. The regulatory proposal builds on details which were captured in the moeccs november 16, 2015 policy paper8.
As a precaution for the safety of clients and staff, the college closed down the walkin service effective wednesday, march 18, and will continue to conduct business by phone 18552990028 and internet service. Learn the basics of cap and trade effective july 3, 2018, we cancelled the cap and trade regulation and prohibited all trading of emission allowances. Below is a chart that summarizes the main features of california and quebecs capandtrade systems as it relates to several key criteria the ontario government. However, under a cap and trade program, the regulator issues one allowance.
Offset initiative protocols for ontarios cap and trade program. News or press inquiries should be directed to arbs public information office at 916 3222990. Cap and trade makes even deeper cuts possible when countries cooperate, such as the united states and canada. Once implemented, this regional market will allow member states to hold joint auctions of emissions allowances and will permit crossborder trading of emissions allowances and offsets. Ontarios cap and trade program began on january 1, 2017 and was a central part. Nova scotias capandtrade program sets a cap on the total amount of ghg emissions allowed in covered sectors in the province for the years 20192022 compliance period. Ontario to adopt the capandtrade model insights dla. This plan will specify measures, in addition to the cap and trade program, that the province intends to carry out over the next five years to reduce ontario. On september 22, 2017, ontario signed a cap and trade linking agreement with quebec and california. Learn more about the program and what it means for you and the environment. The new legislation will implement the government of ontario s commitment to wind down ontario s cap and trade program, and follows up on the july 3, 2018 announcement that the government has revoked ontario regulation 14416 the cap. Ontario plunges into cap and trade with first carbon auction five things to know about cap and trade ontario has set a greenhouse gas emissions cap of roughly 142 megatonnes for 2017. In 2017, the first year of ontarios cap and trade program, the province added over. Ontario updates stakeholders on capandtrade program.