What is it?
Ontario’s Cap and Trade program is designed to encourage efficiencies to mitigate climate change. The Cap is a limit of how many tonnes of greenhouse gasses can be emitted. Companies have a certain allowance per year. They can trade (buy or sell) allowances to meet their target or benefit from savings.
We are not the only jurisdiction doing this. The Federal government is pushing all provinces to find uniformity in carbon pricing. Ontario’s plan is tied to both Quebec and California’s model.
Ontario is committed to GHC reductions goals that increase from 6% below 1990 levels in 2014 to 80% below 1990 levels by 2050. Each year the Cap will get reduced to meet these goals.
What are the key dates?
- January 2017 – Cap and Trade begins
- January/February – 2017 Mock Auction
- March 2017 – First allowance auction
- December 2020 – end of first compliance period
Who has to comply?
Organizations operating a facility generating more than 25,000 tonnes of greenhouse gas emissions per year will be considered a capped emitter and will be required to participate in the cap and trade program. Other types of capped emitters include natural gas distributors, fuel suppliers and electricity importers. Most organizations in this category will already have started reporting to the Province.
How will it affect my Small/Medium Business?
For most SMEs, the major impact will be felt in terms flow through costs.
However, organizations generating between 10,000 and 25,000 tonnes of greenhouse gas emissions per year may choose to opt-in to the program. Why? If an organization is close to the threshold they may be able to realize cost savings however, they will need to make a detailed cost/benefit analysis before doing so. Watch OCC webinar for more details
How will it affect my family?
Costs could rise about $13/month for transportation, fuel and utility bills.
What can I do to minimize the impact of Cap and Trade?
The Province is instituting programs to encourage updating technology, reducing emissions and provide financing to Residential, Commercial and Industrial Users. Watch OCC webinar for more details
Want more info?
Watch: The Ontario Chamber webinar on Cap and Trade presented by Jessica Butts, Director at the Delphi Group. This webinar is now available in the Members Only section of the Chamber website
Password/Conference ID: 7163220