The first phase of the European Union’s Carbon Border Adjustment Mechanism has taken effect. The new rules aim to ensure EU businesses are not disadvantaged by the bloc’s ambitious decarbonization efforts.
Ontario Proposes Changes to Industrial Carbon Pricing Program
Last month, Ontario’s Ministry of the Environment, Conservation and Parks proposed amendments to the Emissions Performance Standards program that regulates industrial greenhouse gas emissions in the province. The proposed program amendments aim to ensure it remains in compliance with the federal government’s carbon pricing benchmark standards for 2023-2030.
European Ministers Support EU Carbon Border Adjustment Regulation
Canada Creates New Fund for Industrial Carbon Pricing Proceeds
In Ontario, it's Doug Ford's "Carbon Tax" Now
Trading to Begin for China's National Cap and Trade Program
Washington to Become Second State With Broad Carbon Pricing Program
The program will cover three-quarters of the state’s emissions, meaning that once in place, Washington will become the second US state (after California) to price most in-state emissions. Collected program revenues will be allocated to a “climate investment account” to support Washington’s green transition.
Canada to Review, Consider Expanding Industrial Emission Pricing System
Canada’s federal ministry of the environment and climate change recently announced it will review Output-Based Pricing System (OBPS) regulations with an eye to increasing emission reductions, covering additional industrial activities, correcting current standards not aligned with activities performed by participating facilities, and improving efficiency.
EU Lawmakers Advance Carbon Border Adjustments Resolution
If implemented, EU carbon border adjustments would place a duty on imports from jurisdictions lacking a sufficient price on carbon emissions. This would protect European industries subject to the bloc’s carbon pricing system from competition with producers in countries with weaker environmental laws, as well as ‘leakage’, wherein businesses relocate operations to environmentally lax jurisdictions to increase cost competitiveness (i.e., ‘offshoring pollution’).
Fed Govt Accepts Ontario Emission Performance Standard as Satisfying Pollution Pricing Law
On September 21st, 2020, the Canadian federal government accepted Ontario’s Emission Performance Standard (EPS) program as an alternative to the federal output-based pricing system (OBPS) that’s been in effect in the province since January 1st, 2019. Both programs are cap and trade-type emission pricing regimes designed to incentivize industrial polluters (e.g., pulp and paper facilities, base metal smelting facilities, etc.) to lower greenhouse gas (GHG) emissions.