CLIMATE CHANGE

What Is Cap and Trade?

Cap and Trade is a market-based system for managing and reducing industrial greenhouse gas (GHG) emissions.

In a cap-and-trade system, government gives corporations “allowances” which limit 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.

Fact Sheet—Cap and Trade: A Primer

What Is Ontario Doing?

Cap and Trade is the GHG emissions reduction model emerging from North America and other countries. Since Ontario’s economy is heavily integrated with that of the U.S., a consistent approach is vital if we are to ensure a level playing field for Ontario’s industries and its competitors.

That’s why Ontario is working with other North American jurisdictions to develop a common trading system. One organization, the Western Climate Initiative (WCI), involves seven states and Quebec, British Columbia and Manitoba in addition to Ontario.

In June 2009, Ontario joined the International Carbon Trading Partnership (ICAP), a forum for countries and regions to create aligned cap-and-trade programs across national borders.

At the same time, Ontario is seeking input from stakeholders to build a provincial cap-and-trade framework that would align with the WCI program and other trading systems. We want a progressive yet flexible Ontario cap-and-trade system that would meet both our environment and economic objectives.

On May 27, 2009, the province introduced legislation that, if passed, would create the government authority to set up a greenhouse gas emissions trading system within Ontario.

The proposed legislation is posted on the Environmental Registry, registry number 010-6467

News Release—Helping the Economy and Environment

Fact Sheet—Ontario’s Approach to Cap and Trade

Discussion Paper

A discussion paper, called “Moving Forward: A Greenhouse Gas Cap-and-Trade System for Ontario”, is now available that will guide consultations over the summer on what Ontario’s cap-and-trade model could look like. It is posted on the Environmental Registry, registry number 010-6740.

Moving Forward: A Greenhouse Gas
Cap-and-Trade System for Ontario - A Discussion Paper

Learn More

• Ontario/Quebec Benchmarking Workshop


• Presentations given at December 10th launch


• To view WCI’s progress, look under WCI Documents at the following link: http://www.westernclimateinitiative.org/


• Recent Ontario cap-and-trade announcements:
  • News Release – Ontario joins International Carbon Action Partnership (ICAP)
  
  
  • News Release - Ontario to Join Climate Change Leaders:McGuinty Government Unites With Provinces, States Tackling Climate Change
  
  
  • News Release - Ontario and Quebec Build Foundation for a Stronger Central Canadian Economic Region: Premiers McGuinty And Charest Hold First-Ever Joint Meeting Of Ontario And Quebec Cabinets
    • Backgrounder - Memorandum of Understanding Between the Government of Ontario and the Government of Quebec: A Provincial - Territorial Cap And Trade Initiative
  
  
  • News Release--Ontario Aligns with Leading States and Provinces to Fight Climate Change: Province Joins The Climate Registry

What's in this Section

Main WHAT IS CLIMATE CHANGE? Why is it happening? How does it affect us?

What the Ontario Government Is Doing

GHG Reduction Targets

Our Plan: Adding It Up

Cap and Trade

Climate Change Secretariat

Ontario Climate Change Announcements

Ministry of Natural Resources (MNR) Initiatives