Ontario's cap-and-trade announcement

TORONTO — Cherise Burda, Ontario Director at the Pembina Institute, made the following statement in response to Ontario's announcement that it will adopt a cap-and-trade system:

“We’re excited to see that Ontario, Canada’s most populous province, is moving forward with putting a price on carbon pollution. The province’s decision to reinvest revenue collected with a cap-and-trade system into initiatives that reduce carbon pollution, such as public transit infrastructure, is a wise one.

“Pricing carbon is crucial to reduce emissions and address climate change. But it’s only one part of the solution. The transportation sector is Ontario’s largest and fastest-growing source of carbon pollution. Providing stable and dedicated funding for transit infrastructure — which also reduces traffic congestion — is therefore a critical step forward. Greater Toronto and Hamilton in particular need new sources of revenue to complete the Big Move regional transit plan.

“We look forward to seeing the full details of Ontario’s cap-and-trade system and climate change strategy as they are announced in the coming months.”

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Background

Ontario emitted an estimated 167 million tonnes of carbon pollution in 2012.
The transportation sector is Ontario’s single largest source of carbon pollution at 57 million tonnes, or 34 per cent of the total.
Building out the next wave of the Big Move — the 25-year regional transit plan for the Greater Toronto and Hamilton Area — will cost $34 billion. Ontario has allocated $15 billion for investment in the plan over the next 10 years, meaning another $19 billion of investment is required.
The Big Move is the provincial policy that promises the largest cuts to carbon pollution from the transportation sector.

Blog: Speeding up climate action in the transportation sector