Ontario’s cap and trade system: What to do with a $2 billion revenue?

The following is a guest post entitled “Ontario’s $2 Billion Question” that was originally posted on EnvironmentalDefence.ca by Keith Brooks, the Director, Clean Economy Program at Environmental Defence. Ontario’s cap and trade system is estimated to generate approximately $2 billion by 2020. This article discusses Ontario’s options for re-investing the revenue back into tangible climate solutions for the province, in order to ensure Ontario meets its 2020 carbon target.

Ontario’s $2 Billion Question

Ontario has announced it is bringing in a cap-and-trade system as part of its climate strategy. Cap-and-trade is one of the main ways governments can put a price on carbon, and it’s a really good idea.

We can’t keep using the atmosphere as a free dumping ground. But right now in Ontario, polluters can pollute for free and there’s no limit to the amount of pollution they’re allowed to spew into the atmosphere. Cap-and-trade addresses both of these issues: It puts a price and a limit (the cap) on carbon pollution. That’s why cap-and-trade is becoming increasingly common around the globe. It’s also why we support it.

Aside from the price and putting a limit on pollution, cap-and-trade has another main strength: it can generate revenue that can be used to support other solutions to climate change – solutions like wind and solar power, more energy efficiency, or electric cars... Read more on Environmental Defence’s website

To read the full report by Environmental Defence and to take action by signing their petition, click here.

Header image source: Created by Environmental Defence for social media sharing

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