skip to main content
Back to all blog posts

Posted in: Climate Change / Renewables | Ontario | Practice & Procedure

Nov 24, 2017

Sell-Out in Final California/Quebec Carbon Allowances Auction Before Ontario Joins

By David Stevens

The results from the November 14, 2017, California and Quebec joint auction of greenhouse gas (GHG) allowances were released on November 22, 2017. All available current and future vintage allowances from both Quebec and California were sold at the latest auction. As we have described in previous posts (see here and here ), the California/Quebec auctions have had mixed success in the past. However, now that the status of the California Cap and Trade program seems assured (see here), it appears that participants are confident that they need to acquire allowances in order to meet future compliance obligations.   

As discussed in an earlier post, Ontario is set to link its Cap and Trade program with California and Quebec. With the linkage, which is expected to be effective January 1, 2018, the quarterly allowance auctions of all three jurisdictions will be held on a joint basis. Starting in 2018, the availability of allowances at each auction will equal the aggregate of the allowances permitted in each of the three jurisdictions.  

If the most recent California and Quebec joint auction is an indicator, then it may be expected that the cost for allowances for Ontario Cap and Trade participants could increase. As set out in the results from the November 14, 2017, California and Quebec joint auction, the settlement price (cost) for current vintage allowances was C$19.10. This compares with the C$18.56 paid by participants in the most recent Ontario-only auction (see here). 

Areas of Expertise

Related Blogs

Ontario Proposes New Regulations to Support Expanded Net Metering By David Stevens Dec 08, 2017 A series of recent postings to Ontario’s Regulatory Registry set out proposed amended or new regulations that are intended to support expanded net metering opportunities in Ontario. These proposals follow the commitment in Ontario’s 2017 Long-Term Energy Plan (2017 LTEP) to give customers new way...

Posted in: Ontario | Practice & Procedure | Climate Change / Renewables

Insights EnergyInsider
Ontario Confirms Updated Cap and Trade Regulations to Link with Quebec and California By David Stevens Nov 30, 2017 Ontario’s Ministry of the Environment and Climate Change (MOECC) has confirmed that a decision has been made to proceed with amended regulations to facilitate the linkage of Ontario’s Cap and Trade program with California and Quebec (discussed in an earlier post). This will ensure tha...
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...