• About
  • Offices
  • Careers
  • News
  • Students
  • Alumni
  • Payments
  • EN | FR
Background Image
Bennett Jones Logo
  • People
  • Expertise
  • Knowledge
  • Search
  • FR Menu
  • Search Mobile
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
View all
Practices
Corporate Litigation Regulatory Tax View all
Industries
Energy Infrastructure Mining Private Equity & Investment Funds View all
Advisory
Crisis & Risk Management Public Policy
View Client Work
International Experience
Insights News Events Subscribe
Arbitration Angle Artificial Intelligence Insights Business Law Talks Podcast Class Actions: Looking Forward Class Action Quick Takes
Economic Outlook New Energy Economy Series Quarterly Fintech Insights Quarterly M&A Insights Sustainability & the CIO
People
Offices
About
Practices
Industries
Advisory Services
Client Work
Insights
News
Events
Careers
Law Students
Alumni
Payments
Search
Subscribe

Stay informed on the latest business and legal insights and events.

LinkedIn LinkedIn Twitter Twitter Vimeo Vimeo
 

Ontario Releases Draft Carbon Market Details

March 01, 2016

Written By Mike Barrett, Thomas McInerney and Sarah Gilbert

Ontario has released a proposed new statute called the Climate Change Mitigation and Low-Carbon Economy Act, 2016 (the Climate Change Act). The Ontario government also released the Cap and Trade Regulatory Proposal (the Cap and Trade Regulation) and a Revised Guideline for Greenhouse Gas Emissions Reporting (the Reporting Regulation).

Comments on the Climate Change Act may be submitted to the government until March 25, 2016. Comments on the Cap and Trade Regulation and the Reporting Regulation may be submitted until April 10, 2016.

Ontario is developing new climate change regulation as part of a process to join the Western Climate Initiative. The Western Climate Initiative includes Quebec and California among its member jurisdictions.

The Cap and Trade Regulation includes policy positions regarding a number of key cap and trade typical program elements, including:

  • Greenhouse gases (GHG) emission caps
  • Mandatory and voluntary market participants registration processes. The regime is expected to cover approximately 150 emitters including large industrial facilities, petroleum product distributors and electricity importers
  • The initial compliance period will begin January 1, 2017, and end on December 31, 2020, with successive three-year compliance periods thereafter. Regulated emitters must retire emission credits equal to their actual emissions during a compliance period
  • Certain emitters are to receive free emission allowances, particularly those emitters whose businesses are carbon-intensive and trade-exposed
  • Future credit linkages with Quebec and California will be designed so as to allow emission credits to be traded across the jurisdictions
  • Compliance emitters will likely be able to use qualifying offsets for up to eight percent of their compliance obligations which keeps Ontario in line with Quebec and California
  • Participants may apply for early action credits for the period between January 1, 2012, and December 31, 2015

It is expected the proposed regime will generate approximately $1.8-1.9 billion per year in new revenue which will be paid into a Greenhouse Gas Reduction Account which, in turn, will be used for GHG reduction initiatives.

Please note that this publication presents an overview of notable legal trends and related updates. It is intended for informational purposes and not as a replacement for detailed legal advice. If you need guidance tailored to your specific circumstances, please contact one of the authors to explore how we can help you navigate your legal needs.

For permission to republish this or any other publication, contact Amrita Kochhar at kochhara@bennettjones.com.

Key Contact

  • Sarah E. Gilbert Sarah E. Gilbert, Partner

Related Links

  • Insights
  • Media
  • Subscribe

Related Expertise

  • Climate Change

Recent Posts

Client Work

Plains All American Executes Definitive Agreements for C$5.15 Billion Sale of NGL Business to Keyera

June 19, 2025
       

Articles

Bennett Jones on Tax Disputes: June 2025

June 18, 2025
       

Client Work

Canadian Pacific Railway Company Closes C$1.4 Billion Debt Offering

June 16, 2025
       

In The News

Canada Needs to Build Economic Resilience: Bennett Jones Economic Outlook

June 16, 2025
       

Speaking Engagements

Legacy Builders Live Webcast

June 12, 2025
       

Client Work

Bennett Jones Acts for Dow Chemical in Successful $3.56 Billion Contract Claim

June 11, 2025
       

Speaking Engagements

Uncovering the CETA Opportunity

June 11, 2025
       

Client Work

DCM Group, a Thrust Capital Partners Portfolio Company, Acquires Metcor

June 09, 2025
       

Updates

Economic Outlook: Building Resilience and Capacity in a Disrupted World

June 2025
       
Bennett Jones Centennial Footer
Bennett Jones Centennial Footer
About
  • Leadership
  • Diversity
  • Community
  • Innovation
  • Security
Offices
  • Calgary
  • Edmonton
  • Montréal
  • Ottawa
  • Toronto
  • Vancouver
  • New York
Connect
  • Insights
  • News
  • Events
  • Careers
  • Students
  • Alumni
Subscribe

Stay informed on the latest business and legal insights and events.

LinkedIn LinkedIn Twitter Twitter Vimeo Vimeo
© Bennett Jones LLP 2025. All rights reserved.
  • Privacy Policy
  • Disclaimer
  • Terms of Use
Logo Bennett Jones