The Ontario government has finally released the long-awaited Climate Change Action Plan — and it is jam packed with lots of incentives for electric vehicles and green home retrofits.
The strategy works in tandem with the cap and trade program finalized by the Liberals a few months ago. This strategy is expected to create around $1.9 billion in revenue through the auctioning of emission credits, which will then be invested into a new Greenhouse Gas Reduction account. These funds will be “responsibly and transparently invested into actions that directly reduce greenhouse gas pollution, create jobs, and help people and businesses shift to a low-carbon economy.”
One of the biggest concerns people had with the government’s climate strategy was that the plan would include a ban on natural gas and would negatively affect businesses and drivers that use a lot of carbon. The 86-page document addresses this concern by saying “it will not take away personal choice: no one will have to stop using gas in their home or give up their gas-powered car by a certain date. Rather, the plan creates the conditions that provide choice. It gives consumers and businesses more reasons to reduce their carbon footprint, and creates competitive conditions for the adoption of low-carbon technology.”
Here are some of the highlights:
- A Green Bank will be established to help homeowners and businesses access and finance energy-efficient technologies to reduce greenhouse gasses. This includes a number of rebates for retrofits in social housing. Homes being sold after 2019 will be provided with a free energy audit.
- More than one third of Ontario’s greenhouse gasses are created by transportation. Cars and trucks make up 70 per cent of this carbon. The Ontario government is offering rebates of up to $14,000 per eligible electric vehicles, including a $1,000 rebate for charging stations. The goal is to have every new home buying built after 2018 to include a charging plug in the garage.
- The government will establish a four-year free overnight electric vehicle charging program for residents starting in 2017.
- A “cash for clunkers” program will work with the rebates for electric vehicles to get older, less efficient vehicles off the road. Companies and drivers who buy green vehicles will receive a special license plate that will allow free access to provincial HOV and tolled lanes.
- Focus on researching and developing new green technologies and transitional allowances for high-polluting businesses.
- Emphasis on implementing more cycling and walking networks throughout the province to rid gridlock and therefore reduce the amount of carbon emitted by vehicles on the roads.
The purpose of all of these programs is to cut Ontario’s greenhouse gas pollution to 15 per cent bellow 1990 levels by 2020, 37 per cent by 2030, and 80 per cent by 2050.
The government is spending between $5.9 billion to $8.3 billion over the next five years on new programs, incentives, rebates, and green technologies. The $1.9 billion earned by selling emission credits through the cap and trade program will make up some of these funds.
The plan will add about $5 a month to home heating bills and 4.3 cents a litre to gas prices.
The Climate Change Action Plan outlines the provincial (and sometimes municipal) responsibilities for the next five years and will be reviewed and updated every five years after the fact. An implementation update will be provided annually for transparency.