December 9, 2009

Cap-and-trade is on its way in Ontario now that the legislature passed the Environmental Protection Amendment Act -- also called informally the Greenhouse Gas Emissions Trading Act.  It is based on the Ontario Climate Change Action Plan that calls for reducing greenhouse gases by 6% from 1990 levels by 2014, and 15% by 2020.

          The act allows Ontario's program to link to other systems in North America and abroad.

          "We are working with other jurisdiction, including the province of Quebec and the Western Climate Initiative," the Ministry of Environment told us yesterday.

          While the lawmaker's approval sets up the framework for a cap-and-trade plan, the Environment ministry must now create the regulations that will govern the program.  There is no firm timeframe yet for the first Ontario auction.

          "Cap-and-trade will play an extremely important role in our future," said John Gerretsen, Minister of the Environment.

          "It will help industrial emitters reduce their greenhouse gas emissions, generate many new jobs and opportunities for Ontarians and improve our environment for generations to come."