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ARTICLE · 26 MAY 2016

Ontario Passes Cap & Trade Legislation

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The Ontario legislature has passed its climate change legislation, which will create a cap and trade system for the province.

CanadaEnergy and Natural Resources
Zoë Thoms
Zoë Thoms
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The Ontario legislature has passed its climate change legislation, which will create a cap and trade system for the province. As we previously wrote, the Climate Change Mitigation and Low-Carbon Economy Act, 2016 (the "Act") sets out a framework for Ontario's cap and trade program and enshrines emission reduction targets for the province.

The Act sets the following targets for reducing Ontario's overall GHG emissions:

  • 15% reduction by the end of 2020
  • 37% reduction by the end of 2030
  • 80% reduction by the end of 2050

Cap and trade proceeds will be deposited into a new GHG Reduction Account. These funds will then be invested into projects that reduce GHG and help save energy, including public transit, cleantech innovation for industry, electric vehicle incentives and social housing retrofits.

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