Blog Post

Ontario Publishes Proposed Technical Changes to Cap and Trade Regulations for Comment

On April 5, 2017, the Ontario Ministry of the Environment and Climate Change (MOECC) issued a proposal titled Amendments to Cap and Trade Program Regulation and Quantification, Reporting and Verification of Greenhouse Gas Emissions Regulation. The proposal sets out plans to update how free allowances are calculated for certain industries, as well as plans to change how some participants must calculate and report emissions. Details of the proposal are set out in an accompanying document.

While the proposed amendments will not impact most participants in Ontario's Cap and Trade Program, they will be important for some industrial participants. Under proposed changes to the Cap and Trade Program Regulation, the methods for determining free allowances will be updated for certain specific industries (beer production and fuel ethanol production), as well as for several specific participants (identified companies in industries such as pulp and paper and insulation manufacturing). Proposed changes to the Quantification, Reporting and Verification of Greenhouse Gas Emissions Regulation will require that capped participants report emissions from natural gas used at their own facility as well as emissions from natural gas that the capped participant transfers offsite to a non-capped participant. The proposed changes will also require that iron and steel producers report emissions from all process fuels used, including emissions from any process fuels transferred off-site.

Comments on the proposal must be submitted by May 20, 2017.