News in brief
Since Jan. 1, the Government of Ontario has introduced a new cap and trade program with the goal of limiting the amount of greenhouse gas emissions that businesses and households are allowed to emit. A full report can be found on the government’s website, outlining the details of the initiative.
The cap and trade program specifically focuses on fuel suppliers; businesses that emit 25,000 tonnes, or more, of greenhouse gases are required to participate in the new program, while companies that emit between 10,000 to 25,000 tonnes may choose to opt into the program.
Companies that are part of the program pay a newly implemented carbon tax, while receiving tax credits and subsidies for environmentally-friendly energy initiatives.
According to an article by CBC, the cap and trade program is estimated to generate $1.9 billion annually, and Premier Kathleen Wynne has said that the revenue generated from the program will go towards funding clean energy projects in the province.
These programs include funding public transit expansion and improving electric vehicle infrastructure across the province.
“My hope is that as people see some costs […] people will also see offsets,” said Wynne in an interview with CBC. “As the cap and trade revenue comes in, they’ll see reinvestment.”
The cap and trade program is expected to raise energy and heating costs, on average, by $159 for Ontario households.To help offset the rising costs, the Ontario government has pledged to offer homeowners rebates, worth up to $2000, to make aging Ontario homes more energy efficient.
The energy sector is not expected to be affected by the cap and trade program, as most of Ontario’s power is generated through nuclear, wind, and hydroelectric sources, and do not generate substantial greenhouse gas emissions.
Photo by Mariah Bridgeman/The Ontarion.