Ontario’s Progressive Conservative (PC) government on Thursday unveiled its new carbon tax-free climate strategy, which will see it use output-based performance standards (OBPS) for large emitters while incentivising additional GHG cuts through a fund to reach weakened 2030 reduction targets. The 54-page ‘Made-in-Ontario’ proposal will “hold polluters accountable with stronger enforcement and tougher penalties” for those that exceed their emission limits, the government said in a press release. .... But some observers noted that the province’s proposed plan does effectively contain a pricing aspect. “The cost of the compliance options under the OBPS will essentially place a price on emission

Canadian industry to face short carbon market: Report Canadian companies regulated by the federal government's forthcoming program to limit greenhouse gas (GHG) emissions from industry may face a short market next year, according to a new analysis. The market for Canada's output-based pricing system (OBPS) will be short by nearly 12mn compliance units in 2019, the carbon market advisory firm ClearBlue Markets forecast in a report earlier this week. ClearBlue first determined that greenhouse gas (GHG) emissions covered under the OBPS are set to increase slightly, due in large part to the electricity sector in Ontario. Premier Doug Ford has moved to cancel a large number of renewable energy co

Canadian emitters to face 12 Mt shortfall under OBPS in 2019 -analysts Large Canadian emitters to be regulated by the federal government’s output-based pricing standard (OBPS) from 2019 will face a compliance unit deficit of nearly 12 million tonnes during the market’s inaugural year, according to a new report released Monday. Starting Jan. 1, an estimated 133 facilities with emissions above 50,000 tonnes of CO2e annually from seven Canadian provinces and territories will be regulated under the OBPS component of Ottawa’s ‘backstop’ carbon pricing plan. To comply with the OBPS, regulated entities that exceed their relevant emissions-intensity standard can pay the appropriate carbon price in l

Analysts cut WCI price forecast as fuel sales slow A mounting allowance surplus spurred by declining fuel sales in the WCI cap-and-trade programme should result in smaller price gains than previously expected following Wednesday’s auction and into the next decade, according to analysts. Toronto-based consultants ClearBlue Markets said gasoline sales had fallen in California and Quebec through July – down 3.9% YoY in Quebec and 1.2% in California – after rising through the past several years. “While the US and California economies continue to perform strongly, this could be the sign that fuel sales may have peaked,” ClearBlue wrote. “Factors such as the Low Carbon Fuel Standard and increased