Ontario has been working hard to prepare for cap and trade, an environmental initiative that will put a cap on greenhouse emissions and help high polluters to lower their carbon levels.
The program will lower greenhouse gas emissions substantially and will help Ontario reach its climate goals to 15 per cent below 1990 levels by 2020, and up to 80 per cent by 2050. The Ministry of the Environment and Climate Change has been ramping up in preparation of the ground-breaking environmental program in Ontario, with three officers of the legislature releasing detailed reports on the cap and trade program over the last few weeks. This included the Environmental Commissioner on Nov. 22, the Financial Accountability Officer on Nov. 23, and the Auditor General on Nov. 30. The Ontario government is clearly demonstrating transparency and public awareness of the many positive aspects that involve the cap and trade program.
On Nov. 16, the Minister of the Environment and Climate Change Glen Murray also met with Quebec Premier Philip Couillard and Matt Rodriquez, Secretary for Environmental Protection for California, at the 22nd Conference of the Parties to the UN Framework Convention on Climate Change in Marrakech, Morocco. The three leaders discussed their plan to link the cap and trade programs across international boundaries. Ontario plans to link the cap and trade program to Quebec and California by 2018, which will help the new green economy flourish with increased opportunities for competition. Nova Scotia recently announced it is planning to start a cap and trade program as well.
The Environmental Commissioner of Ontario, Dianne Saxe, mentioned the partnership in her report and commends its positive aspects: “The key purpose of linking is to reduce compliance costs for Ontario emitters. Linking reduces compliance costs in two main ways: Creating a bigger, more liquid market for allowances; and giving Ontario emitters access to lower cost allowances from other jurisdictions.”
Cap and trade is a a large undertaking for Ontario, but increasingly crucial in our climate-based economy. The program forces large polluters to cut down on greenhouse gases or contribute to provincial revenue through carbon credits. Alternatively, if a company lowers their emissions, they can make money by selling their extra credits. The program is expected to make $478 million in its first year, and will generate 1.8 to 1.9 billion in the following years until December 2020. The funds will be directed towards green initiatives such as solar power, energy conservation methods, and battery storage. Either way, both initiatives help the ‘green’ agenda because either a high polluter will help fund green projects or they will lower their carbon emissions.
Cap and trade program will be activated in January 2017.
The Ontario Ministry of Environment and Climate Change is leading the way on the climate change agenda, and it is exciting to imagine the significant impact that cap and trade will have on greenhouse emissions in the province.