Fact sheet - Ontario's Approach to Cap and Tradehttp://news.ontario.ca/ene/en/2009/05/fact-sheet---ontarios-approach-to-cap-and-trade.html[5/4/2011 10:40:12 PM]
Ontario will continue to work with its partners in the Western ClimateInitiative (WCI), which is playing an important role in the development of aU.S. federal and broader North American cap-and-trade system. Membersinclude Ontario, Quebec, British Columbia, Manitoba, and seven U.S. states.Ontario will also work with the Government of Canada to develop a nationalsystem that reflects Ontario's interests. One of the goals of this work will beto avoid duplicate federal and provincial regulations.
Ontario's Environmental Protection Act (EPA) provides the authority toimplement a cap-and-trade system.However, the EPA does not provide specific authority to support certainelements of the cap-and-trade system being considered for Ontario. TheEPA needs to be amended accordingly.The proposed amendments to the Environmental Protection Act wouldprovide, if passed, the regulatory authority needed to set up a GHGemissions trading system. This would allow the government to createregulations that would set the rules around such things as allowances, linkingto other trading systems and related activities.While the proposed bill would give the authority to make regulations, thedetails of the regulations would not be determined until the government hasconsulted further with industry and stakeholders. To assist in those talks, adiscussion paper has been developed.Our first consultation with affected industries and other stakeholders shapedOntario's approach to cap and trade. Their input is reflected in theobjectives, which include:establishing a reliable "price on carbon" signal, which would helpindustries plan their growthenhancing competitiveness of Ontario industriesensuring a level playing field for Ontario businessesencouraging low-cost, absolute GHG reductionsavoiding duplication (with potential federal requirements)creating green jobs.The
discussion paper "Moving Forward: A Greenhouse Gas Cap-and-Trade System For Ontario"
- which is posted on Ontario's
under Registry number
- helps clarify the approachbeing considered in Ontario and the decisions to be made around Ontario'smodel. It includes the elements of a cap-and-trade system, givesbackground on each element according to stakeholder views, and outlinesoptions to be weighed. Stakeholder discussions and public review will occurover the summer and fall of 2009.Our path will become clearer as the details of a U.S. federal and Canadianfederal system are revealed and stakeholders make their views known thissummer.
The proposed legislation is posted on the
for 60 days. The public is invited to comment.Ontario's proposed bill must go through final readings and passage before itbecomes law. Second reading would not occur until after the legislatureresumes in Fall 2009.