Ontario Posts Draft Cap and Trade Regulation for Consultation

Ontario has posted its proposed draft cap and trade regulation on the Environmental and Regulatory registries for a 45-day public and stakeholder comment period. This comment period builds on previous consultations with industry and business on the design of a cap and trade program.

The proposal includes an appendix presenting detailed technical information for the distribution of allowances to eligible capped emitters for the first compliance period, details related to early reduction credits, and an overview of complementary amendments for the reporting regulation and incorporated guideline to support implementation of the cap and trade program.

Manning Environmental Law can assist clients who need to understand the requirements and opportunities for their businesses under this legislation and also to formulate a response to this consultation.

Following the 45 day consultation period, comments received will be considered and the content of this document will be revised accordingly and integrated into the final cap and trade regulation.

Cap and Trade Regulatory Proposal

The cap and trade regulatory proposal outlines the policy for a number of program elements, including:

  • Proposed caps
  • Capped and uncapped (market) participants
  • Compliance periods
  • Registration rules
  • Auction and sale rules
  • Strategic reserve of allowances
  • Market rules such as holding limits and purchase limits
  • Compliance requirements
  • Allocations
  • Credit for early action

Complementary Amendments to the Greenhouse Gas Emissions Reporting Regulation:

To support the proposed cap and trade program, the Ministry of the Environment and Climate Change also proposes to revoke the Greenhouse Gas Emissions Reporting Regulation (O.Reg. 452/09) and replace it with a new greenhouse gas reporting regulation and incorporated Guideline under the Climate Change Mitigation and Low-carbon Economy Act, if passed. Proposed changes will include:

  • Requirements to report production and other process related information;
  • Provisions to allow facilities with emissions between 10,000 and 25,000 tonne to opt-in;
  • Clarifications on measurement requirements and reporting of biomass types; and
  • Refinements to the Regulation and Guideline to facilitate implementation of the Cap and Trade Regulation.


Manning Environmental Law is a Canadian law firm based in Toronto, Ontario. Our practice is focussed on environmental law, energy law and climate change law. 

Paul Manning is a certified specialist in environmental law. He has been named as one of Canada’s leading Environmental Lawyers by Who’s Who Legal: Canada and ranked by Lexpert as one of Canada’s Leading Energy Lawyers.

As always, these posts  are provided only as a general guide and are not legal advice. If you do have any issue that requires legal advice please get in touch. Our contact details can be found here




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