The new Cap and Trade Cancellation Act, 2018 is in force starting November 14, 2018. This act will repeal and replace Climate Change Mitigation and Low-carbon Economy Act, 2016 which also includes the repeal of several regulations under it:
Prohibition Against the Purchase, Sale and Other Dealings with Emission Allowances and Credits Regulation
Administrative Penalties (Climate Change Mitigation and Low-carbon Economy Act, 2016) Regulation
Ontario Offset Credits Regulation
Under the Cap and Trade Cancellation Act, 2018, the Government is required to establish targets for reducing the amount of greenhouse gas emissions in Ontario. The Minister of Environment, Conservation and Parks is required to prepare a climate change plan and to prepare progress reports in respect of the plan.
With respect to the wind down of the Cap and Trade Program, the matters addressed by the Act include the following:
1. The retirement and cancellation of cap and trade instruments.
2. The payment by the Crown of compensation in respect of cap and trade instruments, the amount of which is to be determined in accordance with the regulations. The obligation to pay compensation is subject to various limitations set out in the Act.
3. Preventing any cause of action from arising against the Crown and specified related persons as a result of various specified matters, including the enactment of the Act and the repeal of the Climate Change Mitigation and Low-carbon Economy Act, 2016.
4. The extinguishment of any existing proceedings, and the prevention of any future proceedings, against the Crown and other specified related persons, in relation to specified matters.