Cap-and-trade is a market-based system for managing and reducing industrial greenhouse gas (GHG) emissions. In a cap-and-trade system, government limits the amount of greenhouse gases they can emit. Companies that reduce their emissions below their limit have “surplus” allowances they can sell or bank for future use.
The Ontario government seeks input from a broad range of stakeholders to develop a greenhouse gas (GHG) cap-and-trade system. On December 10, 2008, the province launched a consultation process to inform the development of a cap-and-trade system as early as 2010 with the ultimate objective of integrating with other systems. Consultations will continue in 2009, with sector-specific consultations with industries that will be affected by the proposed cap-and-trade system.
To help guide this ongoing stakeholder consultation process, Ontario developed a Discussion Paper: A Greenhouse Gas Cap-and-Trade System for Ontario. This discussion paper was distributed to stakeholders on December 10, 2008 and is also available on the MOE website.
The purpose of this posting is to complement the ongoing stakeholder consultation process by ensuring the broadest range of stakeholder input on the design and development of a cap-and-trade system for Ontario to reduce greenhouse gas (GHG) emissions, as outlined in the attached discussion paper. We are seeking stakeholder comment to help the province develop a robust, but flexible cap-and-trade system – one that can be adapted to new developments in rapidly evolving emissions trading markets. The discussion paper describes cap-and-trade, and sets out the context and key design principles for an Ontario cap-and-trade system that can be integrated with other trading systems.
Ontario has set ambitious GHG emission reduction targets. In order to achieve these targets, actions will be required by every group and individual in the province, including electricity generators and companies in a range of industrial sectors. One program that will help industry reduce GHG emissions is cap-and-trade, a market-based system for managing and reducing GHG emissions.
Ontario is working with other North American jurisdictions to coordinate efforts on cap-and-trade. In July 2008, Ontario joined the Western Climate Initiative – a group made up of seven western states and Quebec, British Columbia and Manitoba. In June 2008, Ontario signed a Memorandum of Understanding with Quebec to collaborate on a regional cap-and-trade system for GHGs. In January 2008, Ontario joined The Climate Registry to work on a common GHG emissions reporting system with other states and provinces. Ontario also participates as an observer in other GHG cap-and-trade initiatives and is exploring opportunities for further cooperation with the federal government to curb emissions.
This proposal was posted for a 35 day public review and comment period starting January 27, 2009. Comments were to be received by March 03, 2009.
All comments received during the comment period are being considered as part of the decision-making process by the Ministry.
Please Note: All comments and submissions received have become part of the public record.
To complement the ongoing stakeholder consultation process on a cap-and-trade system for Ontario, we are seeking input on the attached discussion paper from a broad range of stakeholders. This discussion paper will be posted for a 35-day public review and comment period starting January 27, 2009. Comments will be accepted until March 3, 2009.
All comments received during the comment period will be considered as part of the decision-making process by the Ministry of the Environment.
Please Note: All comments and submissions received will become part of the public record.