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ARTICLE · 19 OCTOBER 2017

Ontario Publishes Draft Rules For Cap And Trade "Offset Credits"

Ontario's Ministry of the Environment and Climate Change (MOECC) has published two proposals related to several new or amended regulations to facilitate linkage of Ontario's Cap and Trade program...

CanadaEnvironment

Ontario's Ministry of the Environment and Climate Change (MOECC) has published two proposals related to several new or amended regulations to facilitate linkage of Ontario's Cap and Trade program with California and Quebec (discussed in an earlier post).

The September 22nd proposal describes the required amendments to the existing Cap and Trade Program Regulation that will implement the linkage (see here). That proposal also includes a discussion paper setting out the outline of an administrative penalty regime under the Cap and Trade program (see here).

The October 4th proposal is focused on "offset credits," and includes a draft regulation setting out the manner in which the MOECC will approve and issue offset credits related to qualifying GHG reduction initiatives. As explained "[o]ffset credits will increase the compliance options available to facilities covered by the cap and trade program while extending the environmental benefits of greenhouse gas mitigation

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