Proposed Cap-and-Trade Design Options

As we noted in an April, 2015 post, Ontario is introducing a cap-and-trade system aimed at reducing greenhouse gas emissions in the province. The government has moved one-step closer in this process, releasing a discussion paper titled Cap-and-Trade Program Design Options on November 16, 2015. The paper outlines and seeks comments on various aspects of a proposed system, including:

• Proposed scope of the program, including which sectors should be covered and when they should be phased-in;
• How new and expanding facilities should be treated;
• How caps should be set and how allowances should be distributed; and,
• Market design features, including registration requirements, auction rules, and trade rules;