Fact sheet - Ontario's Approach to Cap and Trade

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Fact sheet - Ontario's Approach to Cap and Trade
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May 27, 2009 4:02 PM Related News
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Fact sheet - Cap and Trade: A
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Cap and trade is one of the most effective strategies we can use to combat Environment
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climate change, reduce our greenhouse gas (GHG) emissions and help create  
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Proposed amendments to the Environmental Protection Act would put the

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first steps in motion for a cap-and-trade system in Ontario.

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Ontario's leadership in this area -- pursuing partnerships with Quebec, other
  provinces and U.S. jurisdictions - helps to ensure the province's strong
Multimedia position in an emerging green economy.  We will attract new businesses,
stimulate job creation and bolster investments in new greener technology
Photos that can be exported around the world.

Videos Currently, industry (including electricity generation) produces 40 per cent of

the province's total GHG emissions and needs to do its part in helping
 
Ontario meet the targets set in its Climate Change Action Plan.  The plan
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calls for GHG emissions to be reduced by six per cent below 1990 levels by
2014, and by 15 percent by 2020.  

Cap and trade would also create a demand for low-carbon technologies,
driving innovation, economic growth and new job creation.

As well, Ontario would be well positioned to protect Ontario's interests in

negotiations with the federal government and with other jurisdictions when
developing a North American cap-and-trade system.
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  Aligning Ontario's Approach with What is Emerging in North America
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  Ontario will aim to harmonize its cap-and-trade program with Canadian
Resources federal, North American and international approaches.   A broad, common
system would maximize Ontario's trading opportunities, ensure a level
Forms playing field for our industries and avoid punitive cross-border tariffs. The
United States is moving to put a national program in place that could begin
Publications as early as 2012.

http://news.ontario.ca/ene/en/2009/05/fact-sheet---ontarios-approach-to-cap-and-trade.html[5/4/2011 10:40:12 PM]

Fact sheet - Ontario's Approach to Cap and Trade

Laws Ontario will continue to work with its partners in the Western Climate
Initiative (WCI), which is playing an important role in the development of a
 
U.S. federal and broader North American cap-and-trade system.  Members
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include Ontario, Quebec, British Columbia, Manitoba, and seven U.S. states.
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Ontario will also work with the Government of Canada to develop a national
ServiceOntario Locations system that reflects Ontario's interests.  One of the goals of this work will be
to avoid duplicate federal and provincial regulations.
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The Specifics
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Ontario's Environmental Protection Act (EPA) provides the authority to
implement a cap-and-trade system.

However, the EPA does not provide specific authority to support certain
elements of the cap-and-trade system being considered for Ontario.  The
EPA needs to be amended accordingly.
 
The proposed amendments to the Environmental Protection Act would
provide, if passed, the regulatory authority needed to set up a GHG
emissions trading system.  This would allow the government to create
regulations that would set the rules around such things as allowances, linking
to other trading systems and related activities.

While the proposed bill would give the authority to make regulations, the
details of the regulations would not be determined until the government has
consulted further with industry and stakeholders.  To assist in those talks, a
discussion paper has been developed.  

Our first consultation with affected industries and other stakeholders shaped
Ontario's approach to cap and trade.  Their input is reflected in the
objectives, which include:

establishing a reliable "price on carbon" signal, which would help

industries plan their growth  

enhancing competitiveness of Ontario industries

ensuring a level playing field for Ontario businesses

encouraging low-cost, absolute GHG reductions

avoiding duplication (with potential federal requirements)

creating green jobs.

The discussion paper "Moving Forward:  A Greenhouse Gas Cap-and-

Trade System For Ontario" -  which is posted on Ontario's Environmental
Registry under Registry number 010-6740 - helps clarify the approach
being considered in Ontario and the decisions to be made around Ontario's
model.  It includes the elements of a cap-and-trade system, gives
background on each element according to stakeholder views, and outlines
options to be weighed.  Stakeholder discussions and public review will occur
over the summer and fall of 2009.

Our path will become clearer as the details of a U.S. federal and Canadian
federal system are revealed and stakeholders make their views known this
summer.

The Process

The proposed legislation is posted on the Environmental Registry under

Registry number 010-6467 for 60 days.  The public is invited to comment.

Ontario's proposed bill must go through final readings and passage before it
becomes law.   Second reading would not occur until after the legislature
resumes in Fall 2009.

http://news.ontario.ca/ene/en/2009/05/fact-sheet---ontarios-approach-to-cap-and-trade.html[5/4/2011 10:40:12 PM]

Fact sheet - Ontario's Approach to Cap and Trade

If the proposed amendments are passed, then feedback from stakeholders

will shape the regulations that govern cap and trade.  

By mid-2010, government expects to have completed the necessary

groundwork to be able to implement cap and trade in 2012.

LEARN MORE
 

Fact sheet - Cap and Trade: A Primer

Ministry of the Environment

ontario.ca/environment

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Last Modified: February 14, 2011

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