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ARTICLE · 28 APRIL 2015

Ontario Unveils Plan To Join Greenhouse Gas Emissions Cap-And-Trade System

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On the eve of a provincial premiers summit on climate change, the Ontario Government has announced it is joining with Quebec and California in a greenhouse gas ("GHG") cap-and-trade system.

CanadaEnvironment

On the eve of a provincial premiers summit on climate change, the Ontario Government has announced it is joining with Quebec and California in a greenhouse gas ("GHG") cap-and-trade system. Ontario, Quebec and California are members of the Western Climate Initiative and represent a carbon market of 61 million North Americans. Ontario joining Quebec to form a linked carbon market will cover over 60% of Canada's population.

Earlier this year, Ontario initiated a 45-day comment period on its prospective climate change policy direction. The principle policy divide facing any market is whether to adopt a carbon tax mechanism or a cap-and-trade mechanism. British Columbia has adopted a carbon tax that taxes every tonne of GHG released as a result of fossil fuel combustion. Ontario has now decided to proceed down the same path as Quebec. Ontario set the table for this announcement by passing Ontario Regulation 452/09 under the Environmental Protection Act. Ontario

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