Getting out of cap-and-trade
Ford’s promised to get Ontario out of the carbon-emissions market it joined with Quebec and California earlier this year, which makes big greenhouse-gas emitters buy permits to emit at regular auctions. Like firing the chief executive of Hydro One, this comes with complications. The three governments mostly sell “current” permits that apply to emissions this year but they also let companies lock in prices by selling permits that go as far out as 2021. Emitters have bought them, possibly traded some amongst themselves, and the governments have the money already. Disentangling Ontario companies like Enbridge, Goodyear, Hiram Walker and Suncor from the market the government previously made them join will take some doing and probably some money.
The next auction is due in two months. Ontario companies will want to know whether they ought to bid on any permits. If not, Quebec and California will want to know how many they ought to sell without us.
Reevely: Doug Ford's first things
Ford’s promised to get Ontario out of the carbon-emissions market it joined with Quebec and California earlier this year, which makes big greenhouse-gas emitters buy permits to emit at regular auctions. Like firing the chief executive of Hydro One, this comes with complications. The three governments mostly sell “current” permits that apply to emissions this year but they also let companies lock in prices by selling permits that go as far out as 2021. Emitters have bought them, possibly traded some amongst themselves, and the governments have the money already. Disentangling Ontario companies like Enbridge, Goodyear, Hiram Walker and Suncor from the market the government previously made them join will take some doing and probably some money.
The next auction is due in two months. Ontario companies will want to know whether they ought to bid on any permits. If not, Quebec and California will want to know how many they ought to sell without us.
Reevely: Doug Ford's first things
