Canadian Manufacturing

Cap and trade’s impact on manufacturers

by Matt Powell, Assistant Editor, Plant   

Canadian Manufacturing
Environment Manufacturing Regulation Risk & Compliance Aerospace Automotive Cleantech Energy Food & Beverage Infrastructure Mining & Resources Oil & Gas Public Sector Transportation cap-and-trade carbon emissions

Ontario's carbon crusade will likely mimic programs in California and Quebec

Ontario has put a price on carbon, and whether they like it or not, some manufacturers will need to focus on enhancing their energy efficiency efforts to avoid added costs.

Premier Kathleen Wynne’s Liberal government has made Canada’s most-populous province the fourth – alongside Alberta, BC and Quebec – to implement a carbon pricing model.

Although the specifics of Ontario’s cap and trade carbon endeavour won’t be known until the fall, experts say it will likely mimic programs in California and Quebec.

Early estimates suggest cap and trade will add between $1 billion and $2 billion to Ontario’s coffers annually, which the Wynne government says will be reinvested into programs to develop more efficient appliances and housing, building more public transit and infrastructure, and the recently announced Ontario Pension Plan.


There are two possible outcomes for manufacturers: don’t do anything about energy efficiency and pay the price, or avoid penalties by investing in new technologies that reduce the operation’s share of greenhouse gas (GHG) emissions.

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