How Ontario’s cap and trade system works: a few basic details
Ontario formally signed an agreement Friday to link its cap-and-trade system with Quebec and California’s joint market on Jan. 1, 2018. Ontario’s system has been operating on a stand-alone basis this year, and joining the Quebec-California market means the three jurisdictions will hold joint auctions and harmonize their regulations.
Here is a basic explanation on how Ontario’s cap-and-trade system works.
— Ontario has set a greenhouse gas emissions cap of roughly 142 megatonnes for 2017.
— Companies that pollute at least 25,000 tonnes per year have to have a number of allowances equal to their emissions.