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ARTICLE · 10 MARCH 2017

Tying Up Loose Ends: Amendments To Ontario's Cap And Trade Program

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On January 1, 2017, Ontario's Cap and Trade Program came into effect.

CanadaEnergy and Natural Resources

On January 1, 2017, Ontario's Cap and Trade Program came into effect. We authored an overview of the Cap and Trade Program in our November 2, 2016 Special Edition of EnviroNotes! Since then, the Ministry of the Environment and Climate Change (the "MOECC") has hosted a practice auction of emission allowances; scheduled the first exclusive Ontario auction for March 22, 2017; released its Compliance Offset Credits Regulatory Proposal (the "Offset Proposal"); and released regulatory amendments to the Cap and Trade Program Regulation on December 28, 2016 (discussed below).

The next steps in Ontario's carbon pricing initiatives include: (1) implementing the Offset Proposal in early 2017, which provides a framework for carbon offset credits and a corresponding opportunity for businesses not subject to the cap and trade regime to sell carbon credits in the carbon marketplace; (2) reporting the results of Ontario's exclusive auction on April 3, 2017; and (3) linking its

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