Ontario will not participate in the next quarterly WCI auction in August after its new premier announced that his government’s first act will be to scrap the provincial cap-and-trade scheme.
In a statement released Friday, Premier-designate Doug Ford said following the swearing-in of his Progressive Conservative government, his cabinet will end the trading system and challenge the Canadian federal government’s authority to impose its ‘backstop’ carbon tax on the province.
NON-CONTRIBUTORS
Ontario was expected to contribute roughly 28.7 mln allowances to the August auction before it withdrew participation, Toronto-based consultancy Clear Blue Markets said in an emailed note, including 4.4 mln unsold 2017 allowances from the province’s pre-WCI auction last November.
“Ontario not contributing allowances to the auctions raises a number of issues such as uncertainty around compliance and deadlines,” they wrote.
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