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Category Archives: Emissions Trading

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Ontario Cap-and-Trade Update: Auction, Decision and Proposal

Posted in Climate Change, Emissions Regulation, Emissions Trading
Ontario

As Ontario’s Cap-and-Trade Program is now in full swing, we wanted to provide an update on some of the more noteworthy developments.

Quarterly Auction Kick-Off

On March 22nd, 2017, the Ontario Government held the first quarterly auction for emission allowances under the Cap-and-Trade Program. As we previously reported, the Ontario Government indicated that it expects to raise $1.9B yearly from the sale of emission allowances. The first auction generated $472,031,155 in proceeds from the sale of 25,296,367 current allowances sold at $18.08 each, and 812,000 from future vintage allowances sold at $18.07 each. The auction sold 100% … Continue Reading

Compliance with Flexibility: Ontario Releases Regulatory Proposal for Offset Credits under Cap-and-Trade Program

Posted in Climate Change, Emissions Regulation, Emissions Trading
Ontario

As Ontario puts the finishing touches on its cap-and-trade program, which will commence on January 1, 2017, the Ministry of Environment and Climate Change (MOECC) has released its Compliance Offset Credits Regulatory Proposal (the Regulatory Proposal) for a 45-day public comment period that will end on December 30, 2016.  Under the cap-and-trade program, capped facilities will be required to either reduce their greenhouse gas (GHG) emissions or meet their compliance obligations through other regulatory tools, including the use of offset credits. As a compliance mechanism, offset credits provide emitters with greater flexibility and potentially lower cost options to meet their … Continue Reading

Taking the Bull by the Horns: Federal Government Introduces Pan-Canadian Carbon Price and Ratifies Paris Agreement; Paris Agreement to Come into Force in November 2016

Posted in Carbon Tax, Climate Change, Climate Policy, Emissions Regulation, Emissions Trading

The week of October 3, 2016 was an eventful one for Canadian climate change policy as the federal government introduced a pan-Canadian carbon price and ratified the Paris Agreement. Following the federal election in October 2015, indications were that all provinces and territories would be expected to price carbon. This was confirmed on October 3, 2016 when Prime Minister Justin Trudeau announced that the federal government will set a minimum price on carbon starting at $10 per tonne of carbon dioxide equivalent (CO2e) in 2018, which will increase by $10 per year until it reaches $50 per tonne … Continue Reading

Sign of the Times: 177 Nations (and counting) Ink the Paris Climate Agreement while the World Bank and IMF Push for Carbon Pricing

Posted in Climate Change, Climate Policy, Emissions Regulation, Emissions Trading

As recently reported on our Canadian ERA Perspectives blog, the Paris Agreement was opened for signature on April 22, 2016 at the United Nations (UN) Headquarters in New York. The Paris Agreement, which was adopted by the parties to the United Nations Framework Convention on Climate Change (UNFCCC) on December 12, 2015, will remain open for signature until April 21, 2017.… Continue Reading

Ontario’s Amended GHG Reporting Regulation Now in Force

Posted in Climate Change, Emissions Regulation, Emissions Trading
Ontario

As we reported in our earlier blog last fall, Ontario’s Ministry of the Environment and Climate Change (MOECC) proposed certain amendments to the Greenhouse Gas Emissions Reporting Regulation (O. Reg. 452/09) (the Regulation) in preparation for the introduction of a cap-and-trade system in the province. In December 2015, the MOECC filed amendments to the Regulation that came into force on January 1, 2016. An amended Guideline for Greenhouse Gas Emissions Reporting was published at the same time.… Continue Reading

Historic, Durable and Ambitious? UNFCCC Member Nations Adopt the Paris Agreement

Posted in Carbon Tax, Climate Change, Climate Policy, Emissions Regulation, Emissions Trading

The Paris Agreement is a monumental triumph for people and our planet. It sets the stage for progress in ending poverty, strengthening peace and ensuring a life of dignity and opportunity for all.

– United Nations Secretary-General Ban Ki-moon (December 12, 2015)

On December 12, 2015, after two weeks of marathon negotiations at the United Nations (UN) Climate Change Conference in Paris (COP 21), 195 member nations of the United Nations Framework Convention on Climate Change (UNFCCC) – including Canada, the United States, and a number of powerful developing countries including China and India – adopted the Paris Agreement (the … Continue Reading

Policy Considerations when Carbon Taxes Meet Cap-and-Trade

Posted in Carbon Tax, Climate Change, Climate Policy, Emissions Regulation, Emissions Trading
British Columbia

As we recently reported, British Columbia’s (BC) Climate Leadership Team prepared a report setting out 32 recommendations for BC’s climate policy path forward.  Recommendation 29 states that: If the majority of Canadian provinces opt for carbon pricing via emissions trading to cover greenhouse gases from large final emitters, a review should be undertaken of mechanisms to integrate a carbon tax with a cap and trade framework for the BC context.

According to the World Bank, approximately 40 national and 20 sub-national jurisdictions have put a price on carbon dioxide (CO2) using carbon taxes or cap-and-trade … Continue Reading

Navigating the Paris Climate Talks: Understanding the Policy Drivers and Mastering the Climate Lingo

Posted in Carbon Tax, Climate Change, Climate Policy, Emissions Regulation, Emissions Trading

Setting the Stage

This week, all eyes are on Paris as world leaders converged on the French capital in a multi-national effort to forge a new global climate change agreement. As negotiators now turn their focus on transforming the climate rhetoric into legal text, climate change is back in the global spotlight.  Over the years, climate change policy has experienced its ebbs and flows. Climate change arrived on the international stage at the Rio Earth Summit in 1992, where 154 countries signed the United Nations Framework Convention on Climate Change (UNFCCC) to stabilize atmospheric concentrations of greenhouse gas (GHG) emissions … Continue Reading

A More Detailed Look: Proposed Options for Ontario’s Cap-and-Trade Program

Posted in Climate Change, Climate Policy, Emissions Regulation, Emissions Trading
Ontario

As noted in our earlier posting, the Ontario government announced in April 2015 that it would implement a cap and trade program that would eventually be linked with the existing cap and trade systems in Québec and California.  Following extensive public consultations over the summer, Ontario has released its Cap and Trade Program Design Options paper, which is open for public comment until December 16, 2015. As part of the current consultation process, the Ontario government is seeking input on various elements of the program design including timing, scope of the program, caps on greenhouse gas emissions, allowance distribution, … Continue Reading

Ontario Introduces Cap & Trade System

Posted in Climate Change, Climate Policy, Emissions Regulation, Emissions Trading
Ontario

On April 13, 2015, Premier Kathleen Wynne announced that Ontario would implement a cap and trade system aimed at reducing greenhouse gas emissions in the province. Ontario has committed to imposing a hard cap on pollution for each sector of the economy.

A cap and trade system, in general, places a limit on the amount of greenhouse gas emissions that may be produced in a specified time frame. As time progresses, this limit is reduced as per previously established guidelines. Businesses must hold enough emission allowances in order to equal their actual greenhouse gas emissions. If a business does not … Continue Reading