By David Stephens, Aird & Berlis LLP, via Lexology.
Very recently, Minister Murray sent a letter to interested stakeholders indicating that consultations will start soon to “inform post-2020 cap and trade program design.” This follows closely on the heels of the unveiling of the Ontario Government’s Climate Change Action Plan (discussed here) which outlines the measures it will take in the years up to 2020 to reduce GHG emissions and transition the province to a low-carbon economy.
The Climate Change Action Plan includes spending of more than $8 billion to achieve a reduction in GHG emissions of 8.9 million tonnes by 2020. Of course, the GHG reduction commitments made by the Ontario Government continue beyond that date. Indeed, the target in future years is even more ambitious (reductions from 1990 emissions levels of 15 per cent in 2020 to 37 per cent in 2030). The expectation is that the cap and trade program will continue beyond 2020 and will evolve to enable these increasing GHG reduction goals to be reached.