Ontario Climate Change Mitigation and Low-Carbon Economy Act: What can you expect?


Yogendra-ChaudhryRecently, the government of Ontario passed Bill 172, the Climate Change Mitigation and Low-Carbon Economy Act.

We talked with our VP-Advisory & Training, Dr. Yogendra Chaudhry to discuss the key features of this Act and how it affects the industry.

Q. What is the Climate Trade Mitigation and Low-Carbon Economy Act?

It is a significant piece of legislation brought out by Ontario government to tackle climate change. The Ontario Legislature passed Bill 172, the Climate Change Mitigation and Low-Carbon Economy Act, 2016, on May 18. Through this Act the government will invest the proceeds from its cap-and-trade program in a transparent manner into projects and activities that help reduce greenhouse gas pollution. It will come into effect July 1, 2016.

Also, on May 19, the Ontario Government finalized two new regulations under the Act: The Cap-and-Trade Program Regulations (Cap-and-Trade Regulations), which will take effect on July 1, 2016, and The Quantification, Reporting and Verification of Greenhouse Gas Emissions Regulations (Emissions Regulations), which will take effect on January 1, 2017.

air pollution

Q. What are some of its key features?

Q. What does cap-and-trade regulation state?

It states that a facility can only emit as much carbon as it is allowed. One allowance is equal to one ton of carbon dioxide. The first compliance period will be from January 1, 2017 until December 31, 2020. The cap is also provided in the regulations for the years 2017–2020 and will progressively decline each year. The province has set the economy-wide cap at 142 megatonnes per year in the first year of the program and will decline to 125 megatonnes per year by 2020.

Q. What more is expected with respect to this legislation?

The Ministry will propose two more regulations later in 2016 under this Act on:

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