Ontario Announces Results of June Cap and Trade Program Auction
Proceeds Will Be Invested to Help Households and Businesses Fight Climate Change
Today, Ontario announced the results of the province's auction of greenhouse gas emission allowances, held June 6, 2017.
A total of 25,296,367 current (2017) allowances were sold at a settlement price of $18.72 and a total of 1,674,000 future (2020) greenhouse gas emission allowances were sold at a settlement price of $18.30. The auction generated an estimated $504,182,190 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 through the Climate Change Action Plan.
Proceeds from the province's carbon market auctions are funding programs that help people and businesses across Ontario reduce pollution, including:
- $50 million for improved cycling infrastructure in cities to reduce commuting trips in gasoline vehicles
- $200 million to improve energy efficiency and lower GHG emissions in public schools by installing new, more efficient windows, lights and furnaces
- $100 million to help homeowners reduce their energy bills and cut emissions in their homes through high-efficiency retrofits
- $20 million to create a network of fast-charging electric vehicle stations across Ontario to make it easier to drive electric vehicles and reduce pollution
- $92 million for energy efficient repairs and retrofits for social housing units and buildings
- $100 million for small, medium and large-sized businesses to adopt leading-edge technologies, increase energy efficiency and reduce greenhouse gas emissions
- $13 million to support economic growth in First Nations communities by reducing reliance on diesel fuel and provide them with the training, tools and infrastructure to address climate change.
The auction was administered using services contracted by the Western Climate Initiative (WCI) Inc., with oversight from an independent market monitor to ensure market integrity.
The summary report of the results has been made available to the public.
- 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.
- The Climate Change Action Plan and the cap and trade program form the backbone of Ontario's strategy to cut greenhouse gas pollution to 15 per cent below 1990 levels by 2020.
- In April 2015, Ontario announced its intention to join the linked system under the Western Climate Initiative, partnering with other jurisdictions, including Quebec and California, and making carbon pricing a cornerstone in Ontario's fight against climate change.
- 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 assistance.
- 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.
“With the primary purpose to reduce greenhouse gas emissions, Ontario’s carbon market is operating successfully after its second auction. Our market-based system sets a hard cap on pollution while giving maximum flexibility to businesses to decide how they meet their compliance obligations, and invests proceeds into actions that will reduce emissions.”