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Ontario Cap and Trade Q & A

What is Cap and Trade?

Cap and Trade is a new fuel charge that is legislated by the Government of Ontario to directly address climate change and reduce greenhouse gas emissions. Under this new legislation, all fuel suppliers who import oil, propane, and gas into the province are now required to purchase emissions credits in order to be able to supply you with fuel.

If this is not a tax, what is it?

Cap and Trade is not a tax. It is an emissions charge— or a ‘tariff’—added to the price on all fuel in the Province of Ontario for the cost of carbon pollution.

Who is impacted by Cap and Trade?

A. Every resident of Ontario will be affected by Cap and Trade either directly or indirectly because everyone consumes fuel energy. According to the Government of Ontario, everyone is responsible to play a role in reducing greenhouse gas emissions to help the environment.

Why is it not a set price?

The cost per litre, with the added Cap and Trade fee, may vary. If the emissions charge changes, the charge on your bill will be adjusted accordingly.

Will all fuel suppliers/importers charge the same emissions fee?

No. Charges may vary by supplier/importer.

How can I reduce my energy consumption?

The Government of Ontario is planning on granting a rebate of a portion of the emissions revenue to Ontario home-owners via the Green Investment Fund. Qualified residents may be eligible to receive up to $5,000 in rebates – that means cash directly back in your pocket. All you have to do is complete at least two energy upgrades that accomplish energy savings.

If you are thinking of upgrading your furnace, boiler or hot water heater to a more energy-efficient unit, or convert from oil to propane, request an equipment quote now. We can direct you to a certified energy auditor or you can visit: www.ohecip.ca

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