CANADIAN CARBON PRICING MAP
Carbon pricing plans are being rolled out in various forms across Canada. Provinces like British Columbia, Alberta, Ontario and Quebec have paved the way with carbon tax, carbon levy and cap and trade regimes, while other provinces and territories are in the process of designing custom approaches to align with the priorities in their jurisdictions. Check out the latest developments by viewing the interactive LES Carbon Pricing Map below.
ONTARIO CAP AND TRADE
Ontario’s Cap and Trade program has been in effect since 2017.
HOW IT WORKS
Facilities in Ontario that emit more than 10,000 tonnes of CO2 per year (roughly 5 million cubic metres of natural gas) are eligible to “opt in” to the Cap and Trade market. Voluntary participation can significantly lower carbon costs. For example, a facility that uses about 10 million cubic metres of natural gas per year (emitting 20,000 tonnes annually) would avoid over $1M in carbon costs between 2018 and 2020 by opting in.
If your facility emits less than 10,000 tonnes of CO2 per year, you can still reduce carbon costs by improving efficiencies onsite.
CAP AND TRADE REPORTING AND COMPLIANCE
To stay in compliance with Cap and Trade reporting requirements in 2018, companies are required to submit a GHG report in June, and apply for free allowances again in September. It’s best to take a long-term approach to creating a compliance strategy, taking into consideration the following factors:
- Program Rules
- Current Requirements
- Quarterly Auction Strategies
- Purchasing of Allowances
- Investigating the Potential to Purchase and Generate Offsets
- Projected Energy Use and Associated Emissions to 2020