With the Greenhouse Gas (GHG) Cap and Trade plan now a reality in Ontario, we are beginning to learn about some of the details. The recently released “Climate Change Action Plan” includes eight specific “action areas” that clearly indicate GHG Cap and Trade will affect virtually everyone in Ontario.
The action areas are:
- Transportation
- Buildings and homes
- Land-use planning
- Industry and business
- Collaboration with Indigenous communities
- Research and development
- Government
- Agriculture, forest, and lands
The reduction goals are ambitious. According to the Action Plan, with 1990 as the base year, the goal is to reduce the emissions by 15% in 2020, 37% in 2030, and 80% in 2050.
In order to achieve reductions, the Government of Ontario (Ontario) will spend an estimated 5.9 to 8.3 billion dollars over the next several years (in Greenhouse Gas Pollution Reductions). It is estimated that total greenhouse gas reduction by 2020 will be 9.8 million tonnes.
The report goes on to say that Ontario has met its 2014 target of 6% below 1990 levels by closing all of the coal-fired facilities in the province. Ontario was uniquely positioned to change from coal to other reliable sources as it was able to produce abundant energy via a variety of facilities, notably hydroelectric and nuclear. According to Ontario Power Generation, 60% of the electricity in Ontario is produced via nuclear energy.
What Businesses Should Expect
As it relates to businesses, the Climate Change Action Plan lays out additional general plans stating that Ontario will:
- Support significant emissions reductions by large final emitters and small and medium enterprises by providing funds to offset the cost of low-carbon technologies.
- Support research and development, clean technology clusters and commercialization, and deployment of low-carbon technologies.
- Provide transitional allowances to industry to help them transition to lower carbon technology while they reduce greenhouse gas pollution.
As to what to do now, we’ll refer you to “Reporting greenhouse gas (GHG) emissions.” In this document, the government of Ontario states, “You should continue to use Ontario Regulation 452/09 and the Guideline for Greenhouse Gas Emissions Reporting dated December 2015 to prepare emissions reports for 2015 and 2016.”
We will continue to monitor the developments; however, should you need assistance in beginning the evaluation process, including doing a Greenhouse Gas inventory, please contact my colleague, Dr. Khaled Chekiri, P.Eng. (kchekiri@dragun.com) at 519-979-7300, ext.,138. Khaled has worked on some GHG inventories that were more market driven (i.e., part of a vendor requirement), and he can provide you with some insights on the general inventory effort.