Under recently passed climate change legislation, Ontario industries are given specific pollution limits, but can sell their emission allowances to other companies if they come in below their annual limit, or buy credits if they exceed it.The province plans to hold its first auction of pollution credits in early 2017, and expects to raise $1.9 billion a year from the plan, promising to use the money to help people and companies transition to a low carbon economy.
Emission allowances will be capped at roughly 142 million metric tonnes per year in 2017, which is expected to decline 4.17 per cent each year to 2020, what will mean a 15-per-cent reduction in greenhouse gas emissions over 1990 levels. It is expected that new legislation will add $5 a month to home heating bills and 4.3 cents to the price of a litre of gasoline, or $8 a month on average.
Ontario will join existing cap-and-trade markets in Quebec and California starting next January. Read more at http://www.theprovince.com
