The Ministry of the Environment, Conservation and Parks of Ontario (Canada) has issued draft regulations for its climate plan on large emitters and proposed to comply with the Canadian federal government’s mandate through the implementation of a carbon tax scheme to meet new environmental standards.
Ontario's current draft plan is rather meant to provide flexibility for Ontario circumstances as an alternative to the federal carbon tax. It offers companies that exceed emissions standards to pay for "compliance units'', which would start at CAD20/tCO2eq (US$15/tCO2eq) and then rise by CAD10/tCO2eq annually to max out at CAD50/tCO2eq (US$38/tCO2eq) in 2022. The proposal is now open for public comment and proposes to set sector or facility-level carbon emissions standards rather than an absolute cap on emissions.
The proposal is very similar to the federal "backstop" carbon tax system. In October 2018, the federal government of Canada announced the introduction of a "backstop" carbon tax on fuels in the provinces and territories that have no adequate carbon emission pricing plans yet and refuse to adopt the country-wide CO2 pricing system. More specifically, this will apply in Manitoba, Ontario, New Brunswick and Saskatchewan as of April 2019 if they do not introduce a carbon tax scheme before this date.
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