Cap and Trade Regulatory Proposal and Revised Guideline for Greenhouse Gas Emissions Reporting
Regulation - LGIC
Bill or Act:
Summary of Decision:
A decision has been made to proceed with a greenhouse gas Cap and Trade Program Regulation and incorporated allocation methodology and new Quantification, Reporting and Verification of Greenhouse Gas Emissions Regulation and incorporated Guideline under the Climate Change Mitigation and Low-carbon Economy Act, 2016.
The Cap and Trade Program Regulation is a key initiative for the government to tackle climate change. A cap and trade program will reduce the amount of greenhouse gas pollution going into our atmosphere by setting a limit on emissions, rewarding innovative companies, providing certainty for industries, and creating more opportunities for investment. The Cap and Trade Program Regulation and allocation methodology will take effect July 1, 2016.
The new Quantification, Reporting and Verification of Greenhouse Gas Emissions Regulation and incorporated Guideline will take effect January 1, 2017 and applies to activities by persons on and after January 1, 2017. It includes a number of changes that will support the implementation of Ontario's cap and trade program. Ontario Regulation 452/02 under the Environmental Protection Act, R.S.O. 1990, will be revoked after all reporting under it is complete.
The Cap and Trade Program Regulation and new Quantification, Reporting and Verification of greenhouse Gas Emissions Regulation were filed with the Registrar of Regulations on May 19, 2016.
February 25, 2016
Summary of Proposal:
On November 16, 2015 the Ministry of the Environment and Climate Change posted a policy paper to the Environmental Registry (012-5666) for 30 days to gather comments on the design options under consideration for Ontario's greenhouse gas cap and trade program. In addition, since May 2015, Ontario has met with over 700 stakeholders on cap and trade, including industries, associations, environmental organizations, and labour groups. The Government will continue to involve and engage individuals, businesses, communities, municipalities, non-governmental organizations and First Nation and Métis communities in the ultimate goal of fostering a high-productivity low-carbon economy and society in Ontario.
The ministry is now posting:
1.A regulatory proposal for a cap and trade regulation, which includes an appendix presenting detailed technical information for the distribution of allowances to eligible capped emitters for the first compliance period, details related to early reduction credits and an overview of complementary amendments for the reporting regulation and incorporated guideline to support implementation of the cap and trade program. Following the 45 day consultation period, comments received will be considered and the content of this document, including the grey shaded boxes in the draft regulation, will be revised accordingly and integrated into the final cap and trade regulation.
2.A revised Guideline for Greenhouse Gas Emissions Reporting.
Cap and Trade Regulatory Proposal
The cap and trade regulatory proposal outlines a number of program elements, including:
• Proposed caps
• Capped and uncapped (market) participants
• Compliance periods
• Registration rules
• Auction and sale rules
• Strategic reserve of allowances
• Market rules such as holding limits and purchase limits
• Compliance requirements
• Credit for early action
Proposed Complementary Amendments to the Greenhouse Gas Emissions Reporting Regulation:
To support the proposed cap and trade program, the Ministry is now proposing to revoke the Greenhouse Gas Emissions Reporting Regulation (O.Reg. 452/09) and replace it with a new greenhouse gas reporting regulation and incorporated Guideline under the Climate Change Mitigation and Low-Carbon Economy Act, if passed. Proposed changes will include:
•Requirements to report production and other process related information;
•Provisions to allow facilities with emissions between 10,000 and 25,000 tonne to opt-in;
•Clarifications on measurement requirements and reporting of biomass types; and
•Refinements to the Regulation and Guideline to facilitate implementation of the Cap and Trade Regulation.
Air Policy Instruments and Programs Design Branch
77 Wellesley Street West
Phone: (416) 314-3923
July 1, 2016