Ontario cap and trade program design options
Price protection for low income individuals and households; 5. Simple, transparent pricing system that does not include pollution offsets, or limits them to a small proportion of pollution reductions and ensures that they meet high standards; 6. Cap and trade revenues should not go into general funds; 7. I am worried that the proposed cap does not cover a broad enough range of sectors to be effective and fair. The cap should be broadened to increase the scope of the program to cover other sectors.
I am deeply concerned that the current proposal provides free pollution permits to almost all industries. This would make the program less efficient and effective. For cap and trade to be effective, it must be designed so that polluters are forced to pay to pollute. Industry exemptions and free permits have weakened the effectiveness of the European Union cap and trade systems.
I implore you to say no to special interests looking for special deals. You can submit this letter as-is or change it to reflect your own priorities. Key market design features In addition to laying out the high-level aspects of the cap-and-trade market, the Discussion Paper proposed a number of more detailed market design features that will be crucial to any future participants in the market.
Below are some of the most important proposed features: However, the EITE concern only applies to the industrial sector, so electricity, transportation fuel and natural gas distributors would still have to purchase their allowances beginning in Banking allowances - To further mitigate potential compliance costs of the new regime, MOECC proposes that covered entities will be permitted to bank allowances over time so unused allowances in one compliance period may be used or traded in subsequent periods.
Offsets - MOECC plans to allow the use of offset credits using Ontario-approved offset protocols, which are still under development. MOECC proposes a further ten project types will be subject to a more intensive protocol review process. Comment period on Discussion Paper now open As mentioned above, early promises to be a busy time for MOECC with the stated intention to introduce new provincial climate change legislation, a five-year action plan and a regulatory proposal based on feedback from the Discussion Paper.
One other area to watch out for is the possibility of border adjustments whereby the federal government could introduce new tariffs or taxes on imports from countries without carbon pricing schemes to help level the playing-field from EITE industries. How such tariffs could work with current and proposed free trade agreements will likely be a key policy debate in Related services Climate Change Environment.