Before Christmas, Environment and Climate Change Canada (ECCC) released its draft regulations and cost-benefit analysis on the Output-Based Pricing System (OBPS). The federal OBPS is designed with the intent to ensure that there is a price incentive for large industrial emitters to reduce their greenhouse gas (GHG) emissions. Starting in April 2019, the fuel charge component of the system will come into effect in Ontario and will generally apply to fuel producers and distributors. As the proposal currently stands, the OBPS does not balance environmental performance and investment, protect the overall competitiveness of the manufacturing sector, limits the ability to spur innovation and is not protecting against carbon leakage. CME is seeking comments on the draft OBPS regulations.
Please provide us your input and recommendations by January 31st to email@example.com.
You can view our analysis by clicking here.