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In limbo: Cap-and-trade credits and GreenON rebates


July 3, 2018
By David Paddon The Canadian Press

The cancellation of Ontario’s cap-and-trade system will leave billions of dollars in carbon credits in limbo and consumers on the hook for upgrades that were expected to be part of a rebate program.

Incoming premier Doug Ford has vowed to immediately dismantle cap and trade, but has offered few details on how the system will be wound down, and how or if participating companies will be reimbursed.

The GreenON rebate program, which also funded incentives for renovators to buy qualified heat pumps, insulation, solar panels, thermostats and other energy-saving projects, has been closed. A government website originally said work had to be completed by Aug. 31 to receive rebate funds, but Ford later said his government would honour the rebates until the end of October.

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Under the Ontario Liberal government, which was defeated in the June 7 election, the rebates were funded by proceeds from auctions that collected nearly $2.9 billion from companies that bought tradable carbon emission allowances through six auctions in 2017 and 2018.

These companies face uncertainty, as California and Quebec have stopped accepting trades with Ontario-registered accounts as of June 15, and it’s not clear what happens to the previously-issued allowance contracts. | READ MORE