skip to main content
Back to all blog posts

Posted in: Ontario | Energy Policy | Climate Change / Renewables

Sep 14, 2017

Ontario's Carbon Credit Auction Sells Out Again

By David Stevens

On September 13, 2017, the results from Ontario’s third Cap and Trade Program Auction of Greenhouse Gas Allowances were released. All available current and future allowances were sold at the September 6, 2017 auction.

The recent auction was the third time that participants in Ontario’s Cap and Trade Program were able to purchase allowances. As we reported earlier, all of the available 2017 allowances (carbon credits) were sold at each of the first two auctions. This most recent auction is remarkable because, for the first time, all of the future vintage carbon credits also sold out. That stands in contrast to the earlier auctions, where only around half of the future credits were sold.

The price paid for current allowances in the third auction ($18.56) was slightly lower than in the second auction ($18.72). The proceeds from the third Cap and Trade Program Auction of Greenhouse Gas Allowances are around $525 million. This brings the total proceeds from the 2017 auctions to more than $1.5 billion.

As we have discussed, the Ontario government plans to fund its Climate Change Action Plan with the proceeds from the sale of allowances. The News Release announcing the results of the latest auction lists projects and activities that will be funded from the proceeds. These include a $325 million investment in the recently launched “Green Ontario Fund” that is aimed at “reducing greenhouse gas pollution in buildings and industry to help meet Ontario’s emission reduction targets.”

Ontario’s fourth (and final) Cap and Trade Program Auction of Greenhouse Gas Allowances for 2017 will be held on November 29, 2017. This may be the final “Ontario-only” auction, given that the Ontario government has previously indicated its plans as of 2018 to join the the Western Climate Initiative (WCI) auction process that currently includes California and Quebec.

Areas of Expertise

Related Blogs

Posted in: Ontario

Insights EnergyInsider
Ontario Government Passes Sweeping Changes to Employment Standards Legislation By Michael F. Horvat Nov 23, 2017 Bill 148, the Fair Workplaces, Better Jobs Act, 2017, was passed by the Ontario legislature on Wednesday, November, 22, 2017.
Directives Issued to IESO and OEB to Prepare Implementation Plans for 2017 LTEP By David Stevens Nov 16, 2017 In late October, Ontario’s Minister of Energy (Glenn Thibeault) issued Directives to the Independent Electricity System Operator (IESO) and the Ontario Energy Board (OEB), requiring each body to prepare “implementation plans” setting out the steps they intend to take to implement the goals and ob...
Ontario Ministry of Energy Proposes Regulatory Changes to Start Implementing 2017 LTEP By David Stevens Nov 15, 2017 As we discussed in an earlier post, many of the new initiatives set out in Ontario’s 2017 Long-Term Energy Plan (2017 LTEP) will require changes to statutes and/or regulations. Late last month, the Ontario Ministry of Energy announced changes to a couple of regulations to begin implementing annou...