Cap and Trade

September 20, 2017 Hot Topics

Under Ontario’s Cap and Trade program, the auto industry is at a significant risk for carbon leakage and is highly trade exposed as it exports almost 99% of what it builds. In the absence of similar programs in competing jurisdictions, higher manufacturing costs in Ontario as a result of the Cap & Trade program (direct fuel purchases to run plants, increased electricity costs, or increased indirect costs for suppliers and transport of goods) will increase the risk and the competitive viability of existing automotive plants in Ontario.