Effective participation in cap-and-trade requires a multidisciplinary approach involving environmental, finance, procurement and accounting departments to balance administrative, reporting, financial, and trading requirements. This opening session will provide insight on how industry participants are evolving their carbon strategies and provide insight on key concerns and challenges around cap and trade.
Uncertainty over the post-2020 program design for Ontario’s cap and trade is the biggest concern for trade-exposed market participants. Market rules are expected to change as the province aims to meet the target of 37% GHG pollution reduction below 1990 levels by 2030. Lack of clarity on allowance allocation post-2020 is a major concern for industry and is impacting business planning. This session will offer the very latest updates on post-2020 program developments and industry strategies in Ontario.
Participating in Ontario’s cap and trade has introduced new financial liabilities and business opportunities for industry. Developing a carbon strategy that manages risks and identifies potential benefits is essential for Ontario participants.This session will offer detailed case studies rom experienced Quebec market participants on lessons learned in this market and strategies for success in Ontario.
With the first Ontario cap and trade auction taking place this March, mandatory participants are interested to understand the results and how they inform future trading strategies. This session will offer timely analysis on auction outcomes and what it means for participants going forward with critical insight from international carbon auction experts.
The California market experience offers critical insight for Ontario emitters currently developing their compliance strategies. In place since 2013, the program covers large electric power and industrial plants as well as fuel distributors, and is linked to Quebec through the WCI. Amendments to the program are currently under review with the State aiming to meet its new target of reducing emissions to 40% below 1990 levels by 2030. This session will offer critical insight on lessons learned from California with input from the program administrator, the California Air Resources Board, and regulate entities.
Most mandatory participants in Ontario have been actively monitoring and driving down carbon emissions for over a decade, resulting in significant emissions savings. With the introduction of cap and trade, industry is now looking to identify new solutions to further reduce carbon exposure. This session will bring together industry experts to share strategies and discuss challenges for realizing further emissions reductions.
Carbon offsets will play a key role for Ontario participants that have reduced their emissions to the point where further reductions are either cost-prohibitive or would negatively impact performance. Mandatory participants will able to meet up to 8% of their compliance obligation for each compliance period using offset credits which finance qualified projects that generate GHG emissions reductions. This session will provide the latest updates on offset protocols in Ontario and offer international insight on carbon offset markets, finance and best practices.
One of the biggest challenges for industry is accessing capital for technologies that will drive further carbon reductions for their facilities. Ontario plans to reinvest revenues from carbon pricing to support the province’s transition to a low-carbon economy and participants are interested to understand the potential for accessing this capital, which will be around $1.9 bn annually in the first compliance period. This session will explore current revenue recycling plans and evolving opportunities for market participants.
Ontario’s link with the California and Quebec carbon markets will have significant impacts on the carbon strategies of market participants. While the details are currently being finalized, this session will explore the timeline, impacts and key outcomes of Ontario’s link to the WCI.