On November 16, 2015, the Ontario Ministry of the Environment
and Climate Change (MOECC) released preliminary plans for its
proposed cap and trade system. The system, if implemented, would
make businesses in key industries responsible for their emissions
starting on January 1, 2017. The document, entitled Cap and
Trade Program Design Options, aims to generate feedback that
will assist the province in drafting cap and trade regulations. The
MOECC is accepting comments until December 15, 2015.
The Proposed Cap and Trade System
The proposed system, if implemented, would impose an emissions
cap on facilities in regulated sectors as of January 1, 2017. The
aim in the first year is to maintain, rather than reduce, overall
emissions. Thus, the initial cap would be set based on forecasted
emissions levels in 2017. Beginning in 2018, the cap would decline
3.7% each year, making emissions standards more stringent over
time.
