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On April 3rd, Ontario announced the results of the province's first auction of greenhouse gas emissions allowances, which was held March 22, 2017.  The auction generated $472,031,155 in proceeds, which by law will be invested in programs that will reduce greenhouse gas pollution and help families and businesses reduce their own emissions through the Climate Change Action Plan.

A total of 25,296,367 current (2017) allowances were sold at a settlement price of $18.08 and a total of 812,000 future (2020) greenhouse gas emissions allowances were sold at a settlement price of $18.07.  The auction saw just under 100% of available allowances purchased by capped participants.

Ontario has already committed $325 million to the Green Investment Fund to kick-start climate change actions, including: programs to help homeowners use less energy and reduce energy bills through home retrofits; supporting more electric vehicle charging stations across Ontario; helping to retrofit social housing developments to boost energy efficiency; and helping businesses reduce emissions.

Going forward, the proceeds of this auction (the first of many) will underwrite new programs and policies that are expected to boost key low-carbon HVAC technologies and practices.

A summary report of the results has been made available to the public.

For more background information on the Cap and Trade process and the Climate Change Action Plan, explore the following links:

Ontario’s Climate Change Strategy
Climate Change Action Plan
Ontario’s Cap and Trade Program
Ontario’s Green Investment Fund

For more information, contact Ruth Gebremedhinruth.gebremedhin2@ontario.ca; 416-325-5281.