In January 2017, Ontario will begin its “Cap and Trade” program, in hopes of reducing the provinces overall gas emissions. Facilities and natural gas distributors with green house gas emissions greater than 25,000 tonnes per year will be required by law to participate in this program.
How it Works
- The “Cap” portion of the program sets a limit on th amount of emissions, that a company is allowed to produce each year
- The “Trade” portion allow companies to innovate in order to meet their allowance
- Cap and Trade costs will be passed on to all natural gas consumers. This will put upward pressure on electricity prices (HOEP)
- Natural Gas companies consuming greater than 500 GJ/day will have the option to have a custom analysis done to optimize their credits
Active Business Services energy professionals help businesses by working to determine the optimal hedging strategy given today’s market conditions. The result, a strategy that diversifies hedges effectively and reduces high-price exposure while working to maximize low-price potential.
Ontario greeenhouse gas reduction has ambitious targets; 15% reductions against 1990 levels to be achieved by 2020, 37% by 2030 and 80% by 2050
Auction prices will start at a minimum of $17.70 USD/tonne. ABS provides organizations with the ability to decrease this cost through out portfolio of credits