WHAT'S THIS ABOUT?
On January 1, 2017, the Government of Ontario launched its cap and trade program. This program is designed to reduce the province’s total greenhouse gas emissions (GHGs) by setting a “cap”, or maximum limit, on the amount of GHGs that can be released and allowing emitters to trade permission to emit via emissions allowances. The government expects to raise over $7 billion during the first four years of the program, which it intends to invest in actions that further reduce the province’s GHGs.
Our aim is to work with government and the business community to achieve the government’s environmental objectives while maintaining or enhancing the competitiveness of our businesses.
We support the government’s decision to provide free allowances to large emitters for the first compliance period to help them transition to this new cost of doing business. Ontario must continue to design and implement the cap and trade system in a way that maintains the competitiveness of our industries. To do so, it should:
- Make cap and trade revenue available to Ontario businesses to support their investments in low-carbon processes, technology, and other capital to reduce their GHG emissions
- Quickly make offsets available to Ontario businesses to help reduce the cost of compliance and increase the cost effectiveness of the program
- Create more long-term regulatory certainty by determining key design elements of the system beyond 2020