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.
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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