The Carbon Policy of Ontario - Essay Sample

Ontarios cap and trade began on January 1, 2017. The program is a market-based system that sets a limit on greenhouse emissions at the same time providing flexibility to industries and businesses on how they will meet their set limits (Ontario, 2017). The program helps lower greenhouse gas emissions from well-known polluters. It caps how many tonnes of greenhouse pollution that institutions and companies can emit. The limit on gas emissions is essential to the community and the globe because it provides cleaner air and helps in reducing the devastating effects of climate change such as the damage of homes, businesses, and forests due to far-reaching weather events. The policy targets companies and consumers. The price put on carbon emissions on these two parties encourages them to make better choices on the environment. The polluters who emit fewer carbon emissions pay less. Many organizations in Ontario now implement the program, but for the policy to be effective, a company must have permits that will cover their emissions if they exceed the limit. The organizations then later invest in clean technologies to become efficient in their operations, shift to using lower carbon fuels, and the purchase of extra credits. Ontario has already set aside 325 million dollars that will be used to fund the projects under the Green Investment Fund. The fund will help in the fight against climate change, expand the economy, and create more job opportunities. These efforts are part of Ontarios plan to secure a healthy and clean low-carbon future (Ontario, 2017). Trading between and within jurisdictions is made possible by the cap and trade regulation. The law allows companies to trade and sell allowances. An organization that produces more carbon emissions than its limit is forced to buy credits to comply with the law. The extra credits are purchased from a company that reduced its carbon emissions and has surplus credits. In other words, organizations with more carbon emissions buy allowances from companies with low emissions.

Ontarios cap and trade program is an upstream policy that is designed to help homeowners and the economy. The government of Ontario has invested a significant amount of money through the help of the Green Investment Fund. The fund will create projects that will help homeowners use less energy, provide indigenous communities with training and tools that will help address the issue of climate change, develop more electric vehicle charging stations across Ontario, and help businesses to reduce emissions (Ontario, 2017). The cap and trade policy primarily focuses on reducing carbon emissions originating from electricity. For this case, the government of Ontario has created additional programs to help in the reduction of gas emissions. The Northern Ontario Energy Credit is one of the established programs that help low and middle-income families living in northern Ontario by providing tax credits of $146 and $224 for individuals and families. Other plans developed to implement the policy include the Ontario Energy Support Program, Low-income Energy Assistance Program, and Enbridge Home Winter proofing Program among others (Ontario, 2017). Ontarios cap and trade policy have been active since January 2017. The government of Ontario closed down coal-fired power generation, and now their electricity is 90 percent emissions free. The program affects all groups of people in the community from low-income earners, tenants, property owners, and large institutions. Although households in Ontario will pay an additional $13 on electricity per month, the program does not cause any financial burden to low-income families. In fact, the policy aims at creating sustainable incentives that will help both the low-income earner and the environment. The revenue collected from the carbon levy is invested in programs that help homeowners and businesses save money by improving energy efficiency (Ontario, 2017).

The Carbon Policy of Quebec

The government of Quebec takes the fight against climate change seriously. The government is collaborating with other partners to ensure there is progress in their activities. One strategy that the administration has implemented in the fight against climate change is the pricing of carbon. The government designed a cap and trade system for greenhouse gas emission allowances in 2013 (Quebec, 2018). After one year of inception, the system was linked with California to be a part of the Western Climate Initiative. The link between the two formed the largest carbon market in North America. The policy is set to expand and collaborate with Ontario. The carbon market is for companies in the industrial and the electricity sectors. Other individuals and corporations are also encouraged to participate in the carbon market without regulatory obligation. Companies in the industrial and electricity sectors that emit more than 25,000 metric tonnes of carbon dioxide are required to pay for emitting GHG into the atmosphere (Quebec, 2018). Quebecs government sets annual GHG emission unit caps that drop over time. The companies under regulation are obliged to purchase emission units for each tonne of GHG emitted in the atmosphere. Organizations that have minimum GHG emissions than their allocated limits are allowed to sell to other companies that have exceeded their allotted units.

The program is implemented based on the measures set out in the 2013 to 2020 Climate Change Action Plan. The plan consists of thirty priorities and more than one hundred and fifty actions led by fourteen government of Quebec ministries (Quebec, 2018). The enforcement of the policy is designed to help companies, municipalities, and private citizens. The administration of Quebec has introduced more than fifteen programs and other initiatives to assist in the fight against climate change. The administration has also collaborated with other partners who share the same goal. Some of the groups are the Climate Group, which is a network of subnational governments that share best practices in the adoption of a carbon-free world. The Conference of New England governors and Eastern Canadian Premiers is another program that functions as a forum for multisectoral coordination and cooperation (Quebec, 2018). In 2015, the government of Quebec joined the Carbon Pricing Leadership Coalition whose purpose is to develop connections among governments, businesses, and civil society leaders (Quebec, 2018). Quebec has now collaborated with other countries such as Manitoba and Ontario, Switzerland, and Mexico. Equally important, the policy does not affect the poor or the rich, it focuses on all citizens, and the focus is on private citizens, companies, and municipalities. The program also targets companies that are in the electricity and industrial sector since they are the most polluters of the environment. The revenue collected from the credits bought and sold by firms is directed towards developmental projects that mitigate the incidence of carbon emission in the atmosphere. The funds are used to encourage research and development in the field of clean technology. Other applications of the collected revenue include widening the use of renewable power sources in all sectors. The other purpose is the provision of support for the creation of public transit through acceleration of electric transport.

The Carbon Policy of Alberta

The carbon policy of Alberta focuses on all Albertarians to reduce the emission of carbon from their cars and homes. Alberta introduced the carbon levy, which is charged on all transit and heating fuels that emit carbon when burned. Alberta designed the Climate Leadership Plan, which is intended to expand the economy, create more jobs, and reduce the emission of greenhouse gases (Alberta Government, 2018). The plan aims at putting a price on greenhouse gas emissions, diminish pollution from carbon-generated electricity, create more renewable energy, and reduce methane emissions by forty-five percent. The province of Alberta has a progress report, which records all the activities set out by the Climate Leadership Plan. The progress report indicates success in reduction of emissions and investments in innovation, energy efficiencies, and renewables (Alberta Government, 2018).

The mechanism of the policy involves the application of a carbon levy on diesel, natural gas, propane, and gasoline at the gas station. Marked gas and diesel used in the farms are exempt. The levy percentage is determined by the amount of carbon pollution emitted by the fuel and not the mass of the fuel. The cost imposed on households depends on the energy use and driving patterns. Besides, indirect costs are also evident in the carbon levy as businesses may draw down some expenses related to carbon levy to the consumers (Alberta Government, 2018). The policy caters for farmers, businesses, and the economy. Carbon levy rebates are introduced for low-income families. The discounts are helpful for this type of group since they spend most of their salaries to pay for the high cost of electricity and fuel. The policy is inclusive and influences both rich and poor. Families have to pass an eligibility criterion to receive carbon rebates. Moreover, the revenue collected from the carbon levy is used to support small businesses by providing tax cuts, creating energy efficiency programs for farmers, and reinvesting on the economy by assisting low and middle-income families.

References

Alberta Government (2018). Carbon levy and rebates. Retrieved from https://www.alberta.ca/climate-carbon-pricing.aspx#p184s4

Ontario (2017, Apr 7). Cap and trade in Ontario. Retrieved from https://www.ontario.ca/page/cap-and-trade-ontario

Quebec (2018). Quebec: A leader in the fight against climate change! Retrieved from http://www.mddelcc.gouv.qc.ca/changementsclimatiques/index-en.htm