Ontario Cap-and-Trade Auction March 2017

January 26, 2017 by Billy Hamshaw

Ontario’s first auction of allowances under the cap-and-trade program will take place on March 22, 2017.

The application period for the auction commenced on January 20, 2017 and will end on February 21, 2017. In order to participate, participants must have an active Primary Account Representative (PAR) or Alternative Account Representative (AAR) in the Compliance Instrument Tracking System (CITSS) which has been approved by the Ministry of CITSS.

The auction, which will be held on the WCI’s auction platform, will offer bids for year 2017 vintage allowances in the current auction and 2020 future vintages on the advance auction.

The number of allowances offered for sale as follows

            2017 vintage allowances – 25,296,367

            2020 vintage allowances – 3,116,700

Allowances offered in both auctions will sold at a minimum Auction Reserve Price determined by the higher of the California or Quebec Annual Auction Reserve Price. Based on California’s Auction Reserve Price for 2017 of $13.57 USD (compared to Québec 2017 Annual Auction Reserve Price of $13.56 CAD) the Ontario Auction Reserve Price will be around $17.78 CAD given todays exchange rate of 1.31 USD to CAD. The final Ontario Auction Reserve Price will be determined by the exchange rate at time of auction.

For more information on the upcoming auction please see the March Auction Notice Final 2017 provided by the Ontario Ministry of the Environment and Climate Change (MOECC).

MOECC will also be holding a training webinar on Wednesday 1st February.

CaliforniaCarbon.info will be providing exclusive coverage including daily prices and weekly commentary as of February, 2017.

For more information or to speak to our analyst team, please contact CC.info

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