Ontario's Long Awaited Cap-And-Trade Plan

Yesterday, the provincial government released its 2016 Ontario Budget and with it came the details of their much anticipated cap-and-trade plan. The plan, which will be governed by the Climate Change Mitigation and Low Carbon Economy Act, will be linked to existing cap-and-trade systems in Quebec and California under the Western Climate Initiative. The provincial government anticipates that the cap-and-trade plan will cover a broad range of industries, which, in aggregate, account for nearly 82 per cent of the province's total emissions. The plan is expected to generate proceeds in excess of $1.8 billion through the sale of carbon allowances and is intended to do most of the heavy lifting necessary to enable Ontario meet its greenhouse gas reduction target of 37% below 1990 levels by 2030.