Proceeds Helping Households and Businesses Fight Climate Change
December 6, 2017, Today, Ontario announced the results of the province's fourth
auction of greenhouse gas emission allowances, held Nov. 29, 2017.
A total of 20,898,000 current (2017) allowances were sold at a settlement price
of $17.38 CAD and a total of 3,116,700 future (2020) greenhouse gas emission allowances
were sold at a settlement price of $18.89 CAD. The auction generated an estimated
$422,081,073 in proceeds, which by law will be invested in programs that will reduce
greenhouse gas pollution and help families and businesses reduce their own emissions
Climate Change Action Plan.
Proceeds from the province's carbon market auctions are funding programs in 2017-18
that help people and businesses across Ontario reduce pollution, including:
These recent investments build upon $100 million to
help homeowners make home energy upgrades, $20 million to
install a network of fast-charging electric vehicle stations, $92 million
social housing upgrades, nearly $100 million to
help businesses adopt low-carbon technology, and $13 million to
support clean economic growth in First Nations communities, $8 million
to launch a new pilot program to help
fund the purchase of electric school buses, over $1 million to
improve ecosystem health in urban and rural communities across the province.
The auction was administered by the Ministry of the Environment and Climate Change
using services contracted by the
Western Climate Initiative (WCI) Inc., with oversight from an independent
market monitor to ensure the integrity of the process.
summary report of the results has been made available to the public.
" The goal of Ontario's carbon market is to reduce greenhouse gas emissions from
our largest sources of pollution. The proceeds generated are being invested into
Ontario's economy through programs and projects that will do even more to reduce
greenhouse gases, and help people in their everyday lives." - Chris Ballard Minister
of the Environment and Climate Change
- On May 18, 2016, Ontario passed landmark
climate change legislation that ensures the province is accountable for responsibly
and transparently investing proceeds from the cap and trade program.
Climate Change Action Plan and the cap and trade program form the backbone of
strategy to cut greenhouse gas pollution to 15 per cent below 1990 levels
- On September 22, 2017, Ontario signed a
cap and trade linking agreement with Quebec and California. The linkage will
become effective on January 1, 2018.
- After introducing its cap and trade program and putting a price on carbon, California's
economy grew at a pace that exceeded the growth of the rest of the U.S. economy.
- The number of jobs in California grew by almost 3.3 per cent in the first year and
a half of the program, outstripping the national rate of job creation, which was
2.5 per cent over the same period.
- In the United States, the Regional Greenhouse Gas Initiative (RGGI) has invested
more than $1.3 billion of auction proceeds since 2009 in programs that include energy
efficiency, clean and renewable energy, greenhouse gas abatement and direct bill
- RGGI investments are projected to return more than $4.67 billion in lifetime energy
bill savings to more than 4.6 million participating households and 21,400 businesses.