Contact: Katie Sullivan, email@example.com
TORONTO, 3 April – The Ontario government today published the results from the first auction of allowances for its carbon market, a significant milestone for the nascent program.
Results from Ontario’s 22 March auction show that all 25.3 million current vintage Ontario Carbon Allowances (OCAs) were sold at a settlement price of CA$18.08. The province also sold 812,000 of 3.1 million future (2020) vintage OCAs at $18.07.
“The success of Ontario’s first allowance auction is a major landmark for the development of Ontario’s carbon market,” says IETA President and CEO Dirk Forrister. “Auctioning is a transparent way of letting the market set the price, in accordance with commercial needs and the environmental target. We are delighted to see high levels of participation during these early stages of Ontario’s new market, and we expect this momentum to continue as industry becomes acclimated to the market.”
He adds: “The number one priority for a cap-and-trade system is to drive measurable emissions reductions at the lowest cost. The flexibility inherent in this mechanism allows for each emitter to choose its own strategy and best course of action.”
Ontario’s cap-and-trade system began on 1 January 2017, covering large emitters as well as fuel distributors and electricity importers. The province aims to link with California and Québec’s regional market in 2018.
“The key is to focus on the end result of the market, the climate results and reductions achieved,” says Katie Sullivan, Managing Director of IETA. “By allowing trading and linking with similar systems, the overall price of pursuing this goal is even lower. We recognize and applaud this critical milestone of a successful initial auction in Ontario’s carbon pricing journey and fight against climate change.”