Ontario’s Cap and Trade Program came into effect in on January 1, 2017. Set by the government and drops each year, the cap limits how many tonnes of greenhouse gas pollution businesses and institutions can emit.
To comply with the new regulations companies have to become more efficient in using energy, switch to lower carbon fuels or purchase additional allowances (credits) from the government if they exceed the cap. Companies can also trade (buy or sell) allowances among themselves.
Cap and trade is projected to generate about $1.9 billion per year in proceeds which by law have to be invested in public transit, electric vehicle incentives and social housing retrofits.
According to the government, gasoline will cost about 4.3 cents a litre more in 2017 as a result of the cap and trade program. Natural gas will cost households about $5 more per month on average. In total, the average Ontario household will pay about $13 more per month to fuel a car and heat a home.
To lower costs, the government advises Ontarians to eat and buy local, travel cleanly, practise conservation and drink tap water.
See also: Ontario: New fees and fee increases (click HERE)
Trudeau: We’re driving people towards public transit
In an exclusive interview to The Guardian(December 15, 2016), Trudeau also reiterated his preference for building pipelines rather than using rail cars to transfer oil. He said that the government invests in developing renewable sources of energy, drives Canadians towards public transit and strives to diminish the market for fossil fuels in the next two decades.
“What we’re facing right now in terms of the rise of populism and divisive and fearful narratives around the world is based around the fact that globalization doesn’t seem to be working for the middle class, for ordinary people… I’m really just focused on… growth that works for the middle class. That defuses a lot of the uncertainty, the anger, the populismthat is surfacing in different pockets around the world.
“I’ve made very clear that one of the fundamental responsibilities of any Canadian prime minister is to get our resources to market in a responsible sustainable ways, and I’ve used Keystone X.L. pipeline for many years as an example of something I thought was a positive move… replacing rail cars with pipelines is a responsible thing to do…
“We’re driving people towards public transit by creating better public investments in public transit. We’re doing a whole range of things that will diminish the market for fossil fuels as we develop renewables. That’s the transition we’re looking at. It’s not going to happen in a day or in a week, but it’ll happen over years and perhaps a decade or two.”