Environmental Protection Amendment Act (Greenhouse Gas Emissions Trading), 2009

Regulation Number(s):
Instrument Type:
Bill or Act:
Environmental Protection Act, R.S.O. 1990
Summary of Proposal:
The Environmental Protection Act has broad authority to implement emission trading systems for contaminants. This existing authority has been used to establish Ontario’s cap-and-trade program for nitrogen oxides and sulphur dioxide.

Amendments are proposed to the Environmental Protection Act’s authority under Section 176.1 (Regulations, market-based approaches, etc.) to support the distribution of greenhouse gas allowances by auction, free of charge or by other means.

If passed, the proposed legislation would also more clearly set out existing regulation-making powers under Section 176.1 with respect to establishing the scope of a cap-and-trade program, the creation, use, distribution, and trading of allowances and offsets, the establishment of monitoring and reporting requirements, and to support emission trading across jurisdictions.

Ontario is working actively with other North American jurisdictions to pursue a common approach to 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 greenhouse gases. Ontario is also a member of The Climate Registry, participates as an observer in other greenhouse gas cap-and-trade initiatives, and is exploring opportunities for further cooperation with the federal government to develop a cap-and-trade program that reflects Ontario's priorities and is aligned with other systems to provide broad access to trading.

The ability to link to greenhouse gas cap-and-trade systems in other jurisdictions including Quebec, other Western Climate Initiative partners and any future North American trading system provides for broader access to trading and a more effective trading system.
Further Information:
Proposal Number:
Posting Date:
June 9, 2009
Comments Due Date:
July 26, 2009