Cap and Trade for Ontario Delayed
April 19, 2011
Ontario’s plans to implement policies under the Western Climate Initiative (the “WCI”) such as a cap and trade system have been pushed back. The WCI gave a stakeholder presentation in Hollywood on April 13, 2011 and reported that while California, Quebec and British Columbia are still working toward a 2012 start date, Ontario and Manitoba will join later.
BC Environment Minister Terry Lake subsequently clarified to the Globe and Mail that even BC’s implementation target is subject to review. He is quoted as saying
This is not a simple subject to address, and we have to do it in a way that is sensitive to our competitive situation vis-a-vis other jurisdictions and industry. … The final decision on whether to implement in 2012 has not been made at this time.
This doesn’t come as a surprise to many political observers, since both BC and Ontario are close to provincial elections, making full-scale implementation of cap and trade politically challenging. The announcement doesn’t mean that progress is completely stalled, however. The groundwork for a cap and trade or other regulatory system is still being set. Ontario’s Greenhouse Gas Reporting Regulation is in effect, as is BC’s.
Quebec has given no indication that it plans to delay implementation although a spokesperson reached by the Globe and Mail described the January 1 2012 start date as an “objective.”
