How Accurate are the Ford Government’s Numbers to Dismantle the Cap-and-Trade Program?

How Accurate are the Ford Government’s Numbers to Dismantle the Cap-and-Trade Program? Banner Image

One of the first actions the new Conservative government of Ontario took was to start dismantling the cap-and-trade program—an electoral promise made by Premier Ford when he interchangeably called the program a “carbon tax.” A C&T program is in fact an economic policy with a controlled carbon market—and not a carbon tax. Since Mr. Ford never produced a campaign platform, there has not been a thorough examination of this action in terms of climate change preparedness for the province, nor the total cost to dismantle it. There was, however, a hastily produced slide deck presented to the C&T stakeholders regarding their termination costs. The way the Ford government makes CAD$3.88 billion disappear into a $5 million pay-out deserves further examination.

What is the Downside to Cap and Trade?

What is the Downside to Cap and Trade? Banner Image

Since Ontario started its cap and trade program on January 1, 2017, it has generated CAD$2.4 billion dollars in revenue for the province in 5 auctions – money allocated for carbon reducing projects. But, what about the downside? From what I can see, there is very little, but it still needs to be addressed.

Ontario Now Has the Second Largest Cap and Trade Market in the World!

Ontario Now Has the Second Largest Cap and Trade Market in the World! Banner Image

The second largest carbon market in the world was created on January 1, 2018 when Ontario’s cap and trade program was linked with those of California and Quebec in the Western Climate Initiative (WCI). This means Ontario, California, and Quebec will be holding joint auctions of greenhouse gas (GHG) emissions allowances, and also have harmonized regulations and reporting. The international provincial and state governments’ announcement made on September 22, 2017 pledged for them to work cooperatively. By doing so, they are effectively bypassing climate action delays or inaction at the federal level of government, and already this has had an impact on other international cap and trade programs.

If the Cap-and-Trade Charge Is Not a GHG Emissions Tax, Then What Is It?

If the Cap-and-Trade Charge Is Not a GHG Emissions Tax, Then What Is It? Banner Image

When the cap-and-trade charge was added to Ontario consumers’ bills for fuel at the pump, electricity, and natural gas, the public reacted like it was another tax. This is understandable because it looks like a greenhouse gas (GHG) emissions tax. Fuel suppliers, electricity importers, and natural gas distributors do not show the cap-and-trade charge as a separate line item like the HST (harmonized sales tax), but consumers have been paying this additional cost since January 2017. It is not shown because the distributors wanted the cap-and-trade charge buried in their delivery charges. If it were easily identified, then at a minimum it would have informed consumers that the government is dealing with the cost of climate change. But, it is more complicated than that.

Why the Ontario Cap and Trade Program is Here to Stay

Why the Ontario Cap and Trade Program is Here to Stay Banner Image

Some in the business community are uncertain whether the Ontario Cap and Trade (CT) program will survive a Progressive Conservative win in the provincial election scheduled next year, but there is no need to worry.

More Transparency is needed in Ontario’s Cap and Trade

More Transparency is needed in Ontario’s Cap and Trade Banner Image

More needs to be done to ensure the success of Ontario’s Cap and Trade (C&T) program; otherwise misinformation and misunderstanding will be manipulated by politicians and others to scuttle it to keep the status quo. To prevent that, Ontario needs to expand its commitment to greater transparency, and accountability in the following key areas:

Is a Carbon Tax the Same as Cap and Trade?

Is a Carbon Tax the Same as Cap and Trade? Image

There is a lot of confusion between cap and trade (C&T) and a carbon tax. This is understandable because it is all newly mainstream since the Paris Agreement in 2015. Moreover, both terms are related to emissions reduction. This blog will clarify the difference.

Why Should Companies Voluntarily Participate in Carbon Cap and Trade?

Why Should Companies Voluntarily Participate in Carbon Cap and Trade? Image

Voluntary participation in carbon cap and trade is one of those things that is worthwhile to do even though not everyone is doing it, and it does require some effort. There are direct and indirect financial rewards for companies that do so. Ontario’s cap and trade program was implemented July 1, 2016.

What Does 10,000 tons per year of GHG Emissions Look Like?

On May 18, 2016 the Ontario government gave royal assent to legislate the Climate Change Mitigation and Low-carbon Economy Act, which implements the Cap and Trade Regulation effective July 1, 2016. Reporting and verification of greenhouse gas (GHG) emissions is required.

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