On February 12, 2015, the Ministry of the Environment and
Climate Change released
Ontario's Climate Change Discussion Paper
(the Paper), which identifies the risks and challenges associated
with climate change and the threat it poses to Ontario. The Paper
also outlines Ontario's long-term visions for reducing
greenhouse gas emissions, most notably by establishing a carbon
pricing policy in Ontario. "A well-designed carbon pricing
system is the most cost-effective approach to reducing greenhouse
gas emissions," the Paper states. "Carbon pricing reduces
greenhouse gas emissions as businesses and households incorporate
the cost of emitting carbon into their decisions, encouraging
companies and consumers to move away from fossil fuels and towards
cleaner and more efficient ways of going about their
business." The Paper outlines four approaches to carbon
pricing:
