Ontario

The California Air Resources Board’s most recent quarterly cap-and-trade auction was the first to result in only a fraction of available permits sold. Detractors used the weak auction results to highlight the program’s uncertain future, whereas advocates touted the state’s success in cutting carbon emissions quicker than expected. To CARB Chair Mary Nichols, who has overseen the leadership of the program since its inception, the auction showed that industries were keeping a lid on carbon emissions rather than buying permits to emit more. Nichols speaks to ongoing efforts to extend California’s carbon cap-and-trade system, and to expand the model to other states. Nichols also addresses the historic enforcement action and settlement with Volkswagen, which CARB led on negotiating.

Ontario finalized its cap-and-trade program in June, and will conduct the first auction in July. As a member of the Western Climate Initiative, the province has also signaled its intent to link its system to similar ones operating in Quebec and California. The Climate Change Mitigation and Low-Carbon Economy Act mandates that revenues from Ontario’s auctions go into the Greenhouse Gas Reduction Account to fund a number of diverse programs aimed at reducing greenhouse gas emissions. But experts disagree on how the province can best recycle the cap-and-trade revenue. Before the program was finalized, the Canada EcoFiscal Commission hosted a roundtable of advocates from around the country representing priorities from social inequality to business development. VX News presents an excerpt of the debate with remarks by Chris Ragan, chair of the Canada EcoFiscal Commission; Rick Smith, executive director of the Broadbent Institute; Vicky Sharpe, senior fellow at the International Institute for Sustainable Development; Mike Moffat, chief economist at the Moet Center; and Mark Cameron, executive director of Canadians for Clean Prosperity.

On November 3, VerdeXchange Institute co-hosted Ontario Premier Kathleen Wynne, welcoming her to LACI's La Kretz Innovation Campus for a conversation with CARB's Mayor Nichols and former California ISO Chair Bob Foster, moderated by Waterloo Innovation Summit Chair David Fransen. Los Angeles Mayor Eric Garcetti opened the program. Here, VX News presents edited excerpts from the conversation.