The Ontario Ministry of Environment and Climate Change
("MOECC") continues to move towards the introduction of a
cap and trade system for the management of greenhouse gas emissions
in concert with the regime that is in place in Québec and
California and allows trading between those jurisdictions.
There have been several recent announcements by the Premiers and
Ministers of Ontario and Québec related to increasing
cooperation and integration of the carbon emission regulatory
regimes of the two provinces. The latest step along this path of
increased climate harmony saw the MOECC release proposed changes to
the Greenhouse Gas Emissions Reporting Regulation (Ontario
Reg. 452/09, the "GHG Reporting Regulation") along with a
Draft Proposed Guideline for Greenhouse Gas Emissions Reporting
(the "Draft Proposed Guideline").
The MOECC has been engaged in an extensive consultation process
with representatives of various industries and sectors of the
economy that would be affected by the design of a cap and trade
system in Ontario.
The GHG Reporting Regulation currently in force requires
facilities operating in Ontario with annual emissions equal to or
greater than 25,000 tonnes of carbon dioxide equivalent
("CO2e") to record, verify and report their
respective greenhouse gas emissions data.
Several changes will be imposed to facilitate the creation and
implementation of a cap and trade system that will be harmonized
with that of Québec and California (through the Western
Climate Initiative also known as the "WCI). The proposed
amendments, if implemented, would see the lowering of the reporting
threshold to 10,000 tonnes CO2e per year from the
current 25,000 tonne threshold. Verification by a third party would
continue to be required for those emitting above the current
threshold of 25,000 tonnes.
Under the proposed changes, certain emission sources will
require third party verification while others will not be subject
to such a requirement. Further, petroleum product suppliers and
natural gas distributors will be added to the list of those subject
to reporting regulation as soon as 2016.
Other proposed sources of emissions to be added to the reporting
Equipment used for natural gas
transmission, distribution and storage,
Electricity transmission and
Magnesium production, and
Mobile equipment at facilities
Several technical changes are proposed for the GHG Reporting
Regulation and in the Draft Proposed Guideline in order to further
align Ontario's proposed GHG emission regulatory regime and
eventual cap and trade system with those of Québec and
These proposed changes to emissions reporting regulation and
guidance are being released to prepare stakeholders for the coming
cap and trade system and to form the basis of discussion regarding
system design with interested parties. The MOECC has stated that
the draft regulatory proposal for the design of the system will be
released by the Ontario government before the end of 2015.
The posting on the Ontario Environmental Registry which contains
links to the proposed GHG Reporting Regulation and Draft Proposed
Guideline can be found here.
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