Cap and Trade Update - June 2016

Ontario has released its Climate Change Action plan and is moving forward with a cap and trade program to reduce greenhouse gas emissions, while rewarding innovating companies. Provision has been working with Sussex Strategy on a variety of climate-related legislative issues. In addition to the information provided via email earlier this month, we are pleased to provide you with an in-depth summary of the 85 page Climate Action Plan. 

As a part of the Climate Change Action Plan, The Ontario Ministry of Environment and Climate Change has announced its cap and trade informational website along with training dates on its Compliance Instrument Tracking System Service (CITSS), hosted by the Western Climate Initiative. CITTS is the government’s system for delivering the cap and trade program. It will also be the platform on which allowances will be distributed and traded at auction.

For a list of upcoming training webinars, on how to use the CITSS, see below. Three modules of training are offered: how to register (module 1), the account application process (module 2) and defining corporate associations (module 3).

On June 2, 2016, we notified our members and manufacturers that Ontario had finalized the program design and rules around its cap and trade program and were hosting informational webinars to provide program details. 

A series of webinar training sessions (listed below) are planned throughout the summer of 2016 to ensure organizations are ready to participate in Ontario’s cap and trade program in 2017.


Module 1: User Registration
Training sessions will be held on July 19, July 26 and August 9, 2016 from 1pm to 3pm and will cover:
• the required steps, forms and supporting documents
• updating user information once approved in CITSS

Module 2: Account Application
Training sessions will be held on July 20, 27 and August 10, 2016 from 1pm to 3pm and will cover:
• registering participants in CITSS
• required steps, forms and documents
• updating participant information and managing facilities once approved in CITSS

Module 3: Corporate Associations
Training sessions will be held on July 21, 28 and August 11, 2016 from 1pm to 3pm and will cover:
• defining corporate associations
• requirements for disclosing corporate association information

To register for the training modules send your preferred dates for each module by in an email to:

Tyler Hunt, Program Advisor
Program Management Branch
Environmental Programs Division
Ministry of the Environment and Climate Change
tyler.hunt@ontario.ca

In your email, include:
• First and last name
• Position
• Company
• Email address (work)
• Phone number (work)
• Preferred session dates for each of the training modules you are interested in attending (attendees can choose from the various dates offered for each CITSS training session).

Please send your response by June 30, 2016 to ensure your enrolment. In your response include whether you require presentation and training materials in French, or if you have any additional accommodation requirements.

Alberta Government Takes Stance on Climate Change

Provincial Environment Minister Shannon Phillips followed through on her party's promises to address climate change by tabling Bill-20, the Climate Leadership Implementation Act, on May 25, 2016. According to the National Observer, Phillips acknowledges it's time for change. "For too long, governments in Alberta chose to ignore and deny the problem," Phillips said at a news conference. "That approach didn't work."

If passed, the $20 per tonne carbon levy will take effect on January 1, 2017 and set in law Alberta's carbon levy and its accompanying carbon levy rebate. It will also ensure revenue from the carbon levy is invested into addressing climate change. The Bill establishes Energy Efficiency Alberta whose mandate includes increasing consumer energy knowledge and raising awareness of the link between energy use and economic and environment impacts. In addition, Bill 20 would also amend the Corporate Tax Act in order to reduce the small business tax rate and assist these businesses with managing the price of carbon.

CBC News reports that as of January 2017, large emitters will pay a carbon price of $20 per tonne for emissions that go above their target. The price rises to $30 a tonne the following year. Further, the Alberta government expects the carbon tax to raise $9.6 billion over five years.

Manufacturers may especially feel the impact in their supply chains. Sussex Strategy Group says the carbon levy will be imposed on suppliers and distributors that supply fuel into a fuel system that produces heat or energy, including gasoline, diesel or natural gas. The Act includes special requirements for interjurisdictional carriers, diesel locomotives, aviation fuels, natural gas and other miscellaneous fuels. Exemptions are also proposed for certain sectors, such as farming operations as well as specific facilities subject to the Specified Gas Emitters Regulation (SGERS).

The carbon tax/levy is one of the initiatives the Alberta government is pursuing to address climate change. Alberta’s strategy focusses on four key areas that include:
• Phasing out emissions from coal-generated electricity and developing more renewable energy
• Implementing a new carbon price on greenhouse gas emissions
• A legislated oil sands emission limit
• Employing a new methane emission reduction plan

New Code of Practice Addresses Sewer Clogs in Toronto


In February 2016 Toronto revised their sewers by-law and the revision extends to industrial operations where food is cooked, heated, processed or prepared that is indirectly or directly connected to municipal sewers.

Joanne Di Caro, Manager, Environmental Monitoring & Protection provided a letter which outlined that food processors must:

• Take all measures to ensure oil and grease is prevented from entering municipal sewer connections or municipal sewers,
• Install a grease interceptor in any piping system or private water drainage system in compliance with the Ontario Building Code,
• Install a new grease interceptor where the Toronto Water General Manager determines that an existing grease interceptor in an industrial operation is detrimentally affecting municipal sewers, and
• Operate and properly maintain a grease interceptor according to the new Food Service Establishment Environmental Code of Practice.

The City of Toronto provides a detailed publication related to the new code.

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The Bio of Food

Today’s consumer is more and more interested in knowing about their food. That may include where it came from, something about the farmer and/or processor that produced it, specific production practices along the way, nutritional composition, etc. More than that though, they have moved beyond wanting the story of food, they want a biography.

Humans are storytellers at heart.  Before we developed an alphabet, our stories were oral and were passed from one generation to the next.  In today’s world, with a growing cynicism of consumers and multiple communication channels, a story simply doesn’t meet expectations.  Consumers want proof and the only way to provide that proof is to document data and information along the supply chain.   That collection of documentation for a particular item is in effect its own biography.

There will always be a market for products without a story but that market will continue to shrink and price differences between products with a bio and those without can be expected to increase.   Just think of any other market segment beyond food and how even the simplest biography (a brand name) can impact market demand and price.  By adding more information to your product, the discriminating consumer is more likely to consider purchasing that item.

A recent survey by the Canadian Centre for Food Integrity found that 21% of respondents feel that the Canadian food system is headed in the wrong direction while another 50% are unsure.  This is a sobering finding and yet it presents a wonderful opportunity: 50% of consumers are waiting to be shown that everyone along the food supply chain is doing their part to build consumer trust.  Specific concerns identified by consumers related to production practices (e.g., animal welfare), faith in inspection systems (particularly food safety) and trust of specific sectors (particularly food manufacturing, and government) within the supply chain.  As the old saying goes “A chain is only as strong as its weakest link” and so everyone along the supply chain should take the results seriously.

Businesses along the supply chain have different challenges in effectively capturing data and managing information to be more successful.  There are several systems available to help do that. When considering these systems for your own business, be sure to ask these ten important questions:

1.    Does it allow me to capture data easily and in real time?

2.    Is my data safe should my computer malfunction?

3.    Can it be customized to meet my own business needs and preferences?

4.    Is there a support team available when I need help?

5.    Does the system do more than collect data by creating valuable information?

6.    Can I easily share data with those that I want to connect with?

7.    Is it web-based so that updates are not a problem?

8.    Can I use it on my smart phone?

9.    Can I use it out of internet range?

10.  What does it cost?

Too often people start with question #10.   Another old saying is that “You get what you pay for” and while cost is obviously a consideration, you need to ask questions 1-9 first to be able to determine value.

Ensuring that you provide a bio on your product, whether that is an animal, a crop, or a finished product is your way of providing transparency to consumers.   More and more, consumers demand nothing less... they want a biography.

Mike McMorris, General Manager