Billions of dollars in limbo as incoming Ontario premier vows to nix cap-and-trade
The cancellation of Ontario’s cap-and-trade system could leave billions of dollars in carbon credits in limbo and consumers on the hook for pricey home upgrades that were expected to be part of a rebate program.
Jennifer Small, president of a national group that represents the Canadian window and door industry, said it wants an extension to a cancelled rebate program that has paid $500 per opening in which energy-efficient windows are installed.
“We were very surprised by the cancellation and a lot of members are very disappointed,” said Small, who is president of the Fenestration Canada trade association.
“Consumers are concerned that they’re not going to get their rebate.”
These companies face uncertainty, as California and Quebec have stopped accepting trades with Ontario-registered accounts as of June 15, and it’s not clear what happens to the previously-issued allowance contracts.
“It certainly has the potential to create a class of stranded assets,” lawyer Lisa DeMarco said in an interview.
DeMarco, whose firm DeMarco Allan LLP specializes in climate laws, said there are a number of avenues available to the companies — including corporate suits to recover losses or even a challenge by foreign entities under the North American Free Trade Agreement — but “it really depends on what the government does next.”
She said the province might compensate the entities with compliance units in their Ontario-registered accounts, or negotiate a deal.
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