New Details on the First Ontario Cap and Trade Auction Released

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More information on the Ontario greenhouse gas cap and trade auction that will take place in March has been released by the Ministry of the Environment and Climate Change (MOECC). The agency has also issued two proposals for regulatory amendments to the program.

Allowances will be sold at auction in lots of 1,000, according to MOECC. They will not expire, and may be carried over to future compliance periods.

“The price a participant bids is not the price it will actually pay. Instead, every participant will pay the same price for each allowance: the lowest successful bidding price during that auction for that vintage (year) of allowance, or the ‘Settlement Price.’” For the first period, however, most industrial emitters will be given enough free allowances to ensure compliance.

Last month, MOECC also released Proposed Amendments to Cap and Trade Program Regulations for public comment. The comment period closed on Dec. 4, and the agency expects to finalize the amendments early next year.

The Proposed Amendments aim to clarify the program’s policy, technical, and administrative requirements, and connect Ontario’s cap and trade market with those administered by Québec and California.

In addition, MOECC released the Compliance Offset Credits Regulatory Proposal for public comment on the Environmental Registry. The Proposal establishes a structure for offset protocols and credits. The agency is accepting comments on the Proposal through December 30.

For more information, including details on participant training opportunities, see the full article from Gowling WLG via Mondaq.