cap and trade Archives

News July 31, 2017

Minister Murray resigns as Minister of Environment

On July 31, the Honourable Glen Murray, Ontario Minister of the Environment and Climate Change, has announced his resignation. Chris Ballard, former Minister of Housing and Minister Responsible for the Poverty Reduction Strategy, will replace him in the cabinet.

Peter Milczyn, MPP for Etobicoke-Lakeshore, will be given the position of Minister of Housing.

Murray has dedicated most of his life to public service. His extensive political career began in Winnipeg, where he acted as city councillor before becoming Mayor in 1998. After moving to Toronto in 2010, he was elected into the Legislative Assembly of Ontario. Since then, he has held the position of Minister of Research and Innovation, Minister of Training, Colleges, and Universities, Minister of Transportation, Minister of Infrastructure, and finally Minister of the Environment and Climate Change.

Unlike some politicians, Murray is genuinely passionate about the environment, working tirelessly to ensure the policies enacted by the provincial government followed sustainable practices. He is most known for his instrumental role in the creation and adoption of the cap-and-trade regulations that passed through the legislature in mid-May as well as Ontario’s Climate Chance Action Plan.

Murray announced his resignation Monday morning, saying that he will step down from cabinet immediately, but will remain an MPP until Sept 1.

“As part of the Ontario Liberal Government, I have had the opportunity to make a real difference in people’s lives,” he said in a statement posted to Twitter. “I have always tried to bring a fresh and creative approach to public policy and government, making decisions that keep those that matter the most in mind.”

“I ultimately have made the difficult decision, with the support of my partner Rick, to transition from this chapter on to the next chapter of tirelessly working to mobilize to fight climate change at the national level.”

On Sept. 5, Murray will join the Pembina Institute as Executive Director. The Pembina Institute is a 30-year-old Canadian think tank that advocates for clean energy solutions and the overall reduction of fossil fuels.

“Glen is a renowned thought leader on social and environmental issues, with an impressive track record of policy leadership throughout his tenure in elected office,” said David Runnalls, president of the Pembina Institute. “On behalf of the board of directors, I am thrilled that Glen is joining our talented team and know he will propel the Pembina Institute to new heights as we work to solve today’s greatest energy challenges.”

It is unclear at this moment if this change will result in new priorities for the Liberal government, and if Ontario’s climate change plan will still be considered among them.

Sustainability December 8, 2016

Ontario is gearing up for groundbreaking cap and trade project

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 22^nd 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.

News October 5, 2016

Carbon tax angers provinces, but Prime Minister stands strong

Canada’s provinces are at an odds with the federal government after Prime Minister Justin Trudeau announced a unilateral mandatory carbon tax that is set to be launched in 2018.

Anger has swept across the country as Trudeau takes decisive steps to enact a climate change plan that will meet Paris Conference targets to cut carbon emissions 30 per cent of levels from 2005. At the federal-provincial climate talks, the Prime Minister announced that Ottawa will impose a levy of a minimum of $10 per tonne of carbon emissions by 2018. That amount will go up $10 annually until 2022, where it will reach its maximum at $50 per tonne. Trudeau has also granted the provincial governments the opportunity to adopt their own cap and trade or carbon tax programs, as long as it meets the required targets. If the provinces don’t meet those standards, then the government will impose the minimum $10 carbon tax themselves.

But, not everyone is thrilled with the carbon tax. The provinces are irate, especially Saskatchewan and Alberta. Alberta Premier Rachel Notley reported she would only meet 2022 targets of $50 per tonne if the federal government allows the Kinder Morgan pipeline to be built. Saskatchewan Premier Brad Wall has claimed the decision is a ‘betrayal’ on the part of the federal government to work openly with the provinces. Many westerners have claimed that Trudeau’s unilateral policy directly attacks Western Canada and is reminiscent of his late father, Prime Minister Pierre Elliot Trudeau’s National Energy Plan.

On the other hand, the plan is being widely criticized by environmentalists for not being strict enough. Many groups feel that $50 a tonne of carbon would not be able to meet the 2030 Paris Conference targets. I guess there is something to be said of finding the middle ground — if no one is happy, it’s probably a good policy.

Trudeau will convene a first minister’s meeting on Dec. 8 to define the details of the climate plan, which will include the carbon tax.

Climate change is a reality and invoking mandatory laws around it is a step in the right direction. The provinces need to be pushed to implement carbon tax incentives and it is necessary for the federal government to make that decision firmly. Hopefully the other changes that will be discussed in the first minister’s meeting will provide even more climate change incentives and Canada can become a leader in ‘green’ change on the international stage.

If only the provinces would jump on board — an environmentally focused and united country could become a reality.

Politics August 31, 2016

Premier Wynne shows what female leadership can do for climate

This week has been a whirlwind for the provincial government. Ontario Premier Kathleen Wynne’s is in Mexico City to discuss environmental and international relations, all the while promoting women within these industries.

The premier made the trek down south to discuss the importance of climate change and the economy with Mexican leaders, exporters, and potential investors and to host the first-ever Women in Leadership Climate Change Panel Discussion. The participants of this panel discussed the role that women can play in the economic transition to a low-carbon economy and explored the unique experiences of the Indigenous people in the fight against climate change.

Several other prominent women leaders were present as well, including the Executive Secretary of the United Nations Framework Convention on Climate, Her Excellency, Patricia Espinosa. Espinosa was elected executive secretary in May 2016 at the Paris Climate Change Conference. She is originally from Mexico and has worked in foreign affairs between the Americas for several years. Espinosa was joined on the panel by Tanya Muller Garcia, the Minister of the Environment of Mexico City. Garcia actively promoted cycling programs throughout Mexico City and played a large part in integrating the region’s transit system.

Wynne has had a large impact on the climate change agenda in Ontario, most recently with her adoption of cap and trade in Ontario. Part of her agenda in Mexico is to promote an open trade relationship with Mexico City, who has recently adopted a pilot project cap and trade program themselves. An interworking relationship of cap and trade with Mexico would have a significant economic impact on Ontario’s new climate change incentive, and would integrate will with the programs in California and Quebec. Recently, cap and trade has come under fire because Quebec and California have failed to sell all of their emissions, leaving both governments in debt. Many worry Ontario will suffer the same fate.

The climate change conference is a good opportunity for Wynne to show that Ontario is not concerned with the xenophobic agenda that Trump followers and the US is currently leading towards, and is instead open to creating trade partnerships involving climate change. It is inspiring to see a representative of the Canadian political fabric represent women interests, tackling environmental concerns, and promoting healthy international trade relations in the midst of struggling global unity.

It is easy to see this week as a win for Wynne.

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Health & Fitness June 20, 2016

Eco-friendly solutions for the workplace

Have you ever seen lights on at night in a building downtown? It’s easy to forget to turn the switch when you leave work at night — you may be tired, nearly blind from staring at a computer all day, and it simply slips your mind. It’s a small thing, but these type of acts can waste a lot of energy.

Offices are wasting a lot of energy by not implementing sustainable practices, and there is no reason for it. It’s relatively easy to save energy within the workplace. The first step is to use electricity more responsibly. Changing the way office buildings uses this type of energy could have a substantial effect on climate change.

A report released by the U.S. Energy Information Administration in 2012 says that electricity has doubled in use over the last 30 years, from 2,200 trillion Btu of electricity in 1979 to 4,421 Btu in 2012 in commercial buildings in North America. Commercial buildings that use the most electricity include office spaces, education buildings, warehouse and storage and mercantile buildings. Space heating is cited as the primary user of electricity in the buildings.

Using eco-equipment that automatically shuts off overnight, on weekends, and on holidays is an can reduce usage dramatically. Or try motion sensor lighting in areas that aren’t occupied most of the time. There are several eco-friendly companies popping up that offer automatic shut-off plug-ins and lighting systems. By making these small changes it can also save companies money on their wasted electricity bills, not to mention it will reduce the number of carbon credits in the upcoming cap and trade arrangement.

Employing green standards in the construction of the building can help eliminate the need to make changes later. LEED Green buildings and other certification systems are expensive initially, but have substantial savings over time in energy savings and water savings. Solar and geothermal energy usage are common forms of renewable energy that eradicate the need for electricity, helping the planet and your pockets.

Sustainable practices in the office itself include recycling. Make sure to have recycling boxes in all areas of the office, and if you work in an office that doesn’t recycle, take initiative! Go paperless in the workplace if possible as well. Use electronic receipts and invest in online cloud storage to keep files safe instead of printing documents. Cloud storage is a secure online data system that stores files through safe internet programs. Additionally, upcycling old computers by donating them is a good way to contribute positively to society and be eco-friendly.

In the office kitchen, use a compost and create a local rooftop garden with the left-over goodies if you are feeling creative. It is also a fun way to give employees access to fresh and local food and a place to relax during lunch breaks. Green walls are becoming popular in LEED buildings and can help air quality in the office. Eradicate plastic from the kitchen and put reusable cups and forks in the area. Passing out re-usable bags to co-workers helps create an incentive to stay eco-positive and send a green message in the workplace.

If every office space, education facility, warehouse and mercantile area went green, it could change the world. Starting small and leading a recycling campaign or doing something larger like funding geothermal heating could start a green workplace revolution. Go to work and give it a try! Isn’t it worth trying to save the planet one step at a time?

News May 20, 2016

Ontario’s cap and trade program is finalized

Ontario has finalized their cap and trade plan, which will place a carbon tax on high-polluting industries that are contributing to climate change. The climate change legislation was passed on Wednesday and emphasizes the importance of accountability and transparency when investing proceeds for the cap and trade into green businesses through the Greenhouse Reduction Account.

The cap and trade program is a part of the bigger Climate Change Action Plan to reduce greenhouse gas emissions 15 per cent below 1990 levels by 2020. By placing a “cap” on carbon emissions and allowing companies to sell off or “trade” unused credits for a profit, it will help limit and lower emissions in the province. Ontario joins Quebec and California, which have cap and trade programs in place already.

Ontario is expected to generate $1.8 to $1.9 billion per year to invest in environmental initiatives in the province through emission auctions. The cap and trade program is scheduled to take effect on July 1 2016. Regulations were determined on Wednesday, including greenhouse gas emission caps, compliance regulations, auction and sale of allowances and distribution of allowances.

The Chamber of Commerce urged Premier Kathleen Wynne to delay the cap and trade program for one year. Criticisms result from a lack of transparency as to where the proceeds of the cap and trade program are going. Many industry leaders that will be affected by cap and trade are reportedly confused about the regulations that will be put in place, though it appears they are more concerned about how they will be affected financially. The program is set to continue despite these trepidations.

On a positive note, Manitoba has joined the cap and trade plan with Ontario and Quebec, but will limit their program to the 20 largest polluters in the province. This will help balance industry competition and outsourcing to neighbouring provinces that aren’t forced to participate in cap and trade, which has become a relevant concern of the program.

Ontario will give a four-year exemption to industries that are especially vulnerable to cap and trade, including steel or cement manufacturing. Emission targets were also released in the report, indicating the exact allowances that will decrease annually to allow existing companies to adjust to the new program. In 2017, emission allowances are 142, 332,000 tonnes, which will decrease over four years to 124, 668,000 in 2020.

Though the cap and trade program will be a difficult adjustment initially for companies, it will soon become an integral part of doing business while taking the environment into consideration. This is an opportunity for green businesses to take the lead and for Ontario to set an example for the remaining provinces that cap and trade is the only way to make climate change protocol the foremost item on the agenda.

Toronto April 15, 2016

Cap and trade policy kicks off Green Living Show

Cap and trade is one of the hottest topics being discussed at economists’ lunch tables, and now they are inviting environmentalists to join in.

A panel discussion was held Friday to kickstart the Green Living Show with economists, professors and lawyers across different fields to help promote an open conversation about the changes to Ontario’s cap and trade policy. The discussion was hosted by Partners in Project Green, an environmental initiative funded by the Toronto Pearson Airport. This group gathers different organizations across sectors to discuss green business initiatives.

Cap and trade is a policy that places a tax on carbon emissions that exceed a certain amount. It is possible to buy and sell carbon credits, giving companies an economic incentive to develop energy saving technologies in the province. This policy will go into full effect in January 2017.

The discussion at the Green Living Show was led by keynote speaker, Christopher Ragan, who is Chair of Canada’s Ecofiscal Commission and also a professor at McGill University in the department of Economics. Ragan discussed the challenges of implementing cap and trade in Ontario from an economist’s perspective, but he made sure to mention the potential of this initiative. Lowering greenhouse emissions is a world-wide necessity and the consensus was that cap and trade is the most cost-effective way to manage this problem.

Ragan sees the role of capitalism as pushing the new development of a clean energy model. He also spoke about the importance of working together in the wake of this economic shift to ensure that all industries and provinces can benefit from these changes.

The panel itself included Senior Fellow of the Centre for International Governance Innovation, Celine Bak, Managing Director of the Ivey School of Business, Paul Boothe and Professor of Sustainable Prosperity at the University of Ottawa, Stewart Elgie. These three voices provided the perspective of international business relations (Bak), economics (Boothe), and academia (Elgie).

Bak discussed how innovation on cap and trade will strengthen international relations and bring together larger and smaller innovators to increase productivity of new energy resources. Boothe, on the other hand, spoke about how carbon pricing will help promote electric vehicles. The automobile industry has taken a large hit in recent years and Boothe is hopeful the cap and trade policy will boost this sector by encouraging investment in newer green technologies. Elgie emphasized the importance of government intervention in the initial investments of greener technologies so that they could strengthen their profit in the first five years.

The Green Living Show brings innovators and vendors together that are invested in the future of green energy. Hundreds of people attended the event held at the Metro Convention Centre, which just goes to show that environmentalism is being taken seriously by stakeholders, politicians, and the public. I look forward to the changes that cap and trade will bring to the financial landscape of Ontario — I can only hope that it works just as well in practice as it does on paper.

News February 26, 2016

Cap and trade details released in 2016 budget

For all of the Ontarians that were muddled by the lack of information in the cap and trade proposal, many of those questions have been resolved in the 2016 Ontario budget.

The Ontario Liberal government has released specific details about the cap and trade program, which is set to begin in January 2017 under the new Climate Change Mitigation and Low Carbon Economy Act. The cap and trade program will enforce a “cap” on the amount of greenhouse gases that each company can produce. Companies will be able to then “trade” unused carbon credits by selling them to companies that exceed their “cap”.

This enables companies that use clean energy to create financial gains and penalizes companies that have high levels of carbon emissions. The cap and trade program is expected to raise $428 million in 2016-2017 and is then projected to raise up to $1.8 to $1.9 billion in 2017-2018. Cap and trade is one of the many initiatives the provincial government has enacted to reduce greenhouse gas emissions by 80 per cent below 1990 emissions by 2050.

All of the proceeds from the cap and trade program will go to projects and funds in the Greenhouse Gas Reduction Account, which will then support other green projects. The Ontario government has promised the money raised will be transparent, with results of the funds available for the public. Possible green projects include public transit, electric vehicle incentives, social housing retrofits including geothermal infrastructure, and clean-technology incentives for industries.

Ontario’s cap and trade program is mandatory for industries and institutions that emit 25,000 tonnes or more of greenhouse gases annually. It also includes suppliers and distributors of fuel that distribute 200 litres of fuel or more per annum. Companies that import electricity and fuels into Ontario would also be included in the cap and trade. The businesses mandatorily included within the program are representative of 83 per cent of the total greenhouse gas emissions produced in the province.

Initially, Ontario will give free permits to industries that are especially vulnerable to the cap and trade program, including steel or cement manufacturing, to avoid “carbon leakage”, the feared result of companies leaving Ontario to go to other jurisdictions where the carbon cap wouldn’t apply.

Companies and organizations that produce over 25,000 tones of greenhouse gases due to it’s size — like university campuses, hospitals, and electricity generators — will have to purchase carbon permits, which is how the government will make substantial profit in the coming years. If these industries apply clean technologies, they will be able to then “trade” their extra credits and make money from carbon-emitting industries.

Free credits will also be provided on a one-time basis to industries that have voluntarily lowered emissions targets earlier then the January 2017 deadline. Companies with between 10,000 and 25,000 tonnes of greenhouse gases will also have the choice to participate in the cap and trade program, but won’t be forced to.

The “cap” is also set to decline annually to meet 2020 carbon emissions targets and will decrease at a rate of 4.17 per cent per year. A slow decrease in rates allows companies to invest in clean industries slowly and adjust to the new cap and trade program.

Many Ontarians are concerned about rising prices from the cap and trade program. Gas prices are set to increase 4.3 per cent per litre and natural gas costs for home heating will rise $5 per month. Though these increasing prices will put more financial pressures on the consumer, energy programs are being introduced to help mitigate the costs.

Recently, the government introduced an incentive of up to $14,000 to purchase an electric vehicle. Enbridge Gas Distrubtion and Union Gas are also offering programs to help homeowners reduce their electricity costs. An incentive ranging between $1000 and $2,500 is offered if a consumer replaces their furnace and water heating system to a more energy reductive alternative. Enbridge also offers a $75 incentive for an adaptive thermostat, which helps save on heating costs as well.

Living February 24, 2016

What is cap and trade?

Climate change is on everybody’s mind. The Ontario government has been slowly releasing a stream of green initiative announcements about green cars and environmentally sustainable housing retrofits, but one of the most important initiatives is still to come. Investing in a cap and trade program is one of the best options for the province, with the potential of making a vast impact on the amount of carbon Ontario produces.

Cap and trade agreements place limits on the amount of carbon companies can produce without being financially penalized for it. The “cap” puts a limit on the specific amount of emissions that can be produced annually. In Quebec and California, which currently have active cap and trade programs, the cap declines annually by three to four per cent to allow companies to slowly adjust to increasing carbon reduction targets.

The “trade” allows companies to participate in a market where companies can buy or sell carbon credits. The carbon credits are linked to every tonne of greenhouse gas that is emitted. The “trade” portion of the incentive creates an opportunity for companies make financial gains through the use of environmentally sustainable initiatives — if a company lessens their rate of emissions, they can sell their unused carbon credits to other companies.

The cap and trade program simultaneously rewards companies that have lowered emissions, while penalizing companies that use high levels of greenhouse gases. The incentive also pushes companies to invest in green technologies.
When the cap and trade programs were put in place in Quebec and California, free permits were accessible initially to companies that were particularly vulnerable to the cap and trade program, and Ontario is due to follow suit. Companies that are emissions intensive and trade exposed (EITE) will receive free permits until they can gradually meet targets and reduce greenhouse gases.

Ontario’s cap and trade program will partner with the existing system in Quebec and California. The partnership will allow access to a bigger pool of low-cost emission reductions, a larger market for trade, and help to set a common price for carbon across several jurisdictions.

It is expected that the cap and trade program will make $1.4 billion for the Ontario government annually through penalties, permits, and the auctioning off of carbon credits. Ontario has promised this profit will be invested back into environmental initiatives. “The proceeds generated through cap and trade in Ontario will be reinvested in a transparent way. They will be used for initiatives that further reduce greenhouse gas pollution, support innovation and help households and businesses reduce fuel needs,” said the Cap and Trade Program Design Options report, released by the Ontario government.

Cap and trade essentially holds high carbon-emitting companies accountable and allows environmental sustainable companies the opportunity to make financial gains while supporting the green energy industry and boosting government dollars. More importantly though, it makes strides towards a world where human beings co-exist with the planet rather than continue to destroy it— that is, as long as the government doesn’t auction off too many credits, allowing emission-intensive companies to continue producing greenhouse gasses by simply paying for it.

The Ontario Premier, Kathleen Wynne, is positive that this new cap and trade program will make a substantial difference in the province’s emission levels.

“To fight climate change — one of the greatest challenges mankind has faced — Ontario is putting a limit on the main sources of greenhouse gas pollution through a cap and trade system to protect the air we breathe, the water we drink and the health of our children and grandchildren,” she said in a statement back in April.

The Ontario government will be revisiting the cap and trade program in Thursday’s budget meeting, in preparation for its estimated launch in January 2017.