Today, the first auction of allowances under Ontario’s cap and trade program was held. While the auction results won’t be made public until April 3, 2017, some analysts expect that most of the 28 million allowances put up for auction will be sold.
If you want to know more about cap and trade or Ontario’s program design while waiting for the auction results, check out our guide, Introduction to Cap and Trade in Ontario (drafted as Appendix A to Facing Climate Change, the ECO’s Greenhouse Gas Progress Report 2016).
We know that cap and trade systems are complex and can be difficult to understand. Our goal was to develop a resource for Ontarians that provides definitions of key terms and a basic explanation of how cap and trade works.
Our guide explains why Ontario chose cap and trade versus a carbon tax and discusses some of the main concerns expressed by Ontarians about transparency and enforcement.
Introduction to Cap and Trade in Ontario also provides information on how the program was established, the legal framework that underpins it, as well as the relationship between Ontario’s cap and trade program and other jurisdictions in the Western Climate Initiative.
For those interested in learning more about cap and trade in Ontario, this document is a great starting point.
Our office will follow today's results closely, as well as the three additional auctions that will be held this year, and will continue to monitor the government's progress in meeting its GHG targets.