Enabling Climate Solutions
On June 3, Canada’s Ecofiscal Commission, a Metcalf grantee, hosted an event in Toronto featuring an all-star line-up of speakers on the topic of Ontario’s climate action plan, specifically its commitment to implement a cap-and-trade system. Coinciding with this event, the Commission released a brief outlining four fundamental principles of good cap-and-trade design. The four fundamental principles are as follows:
- Stringency of policy should rise gradually and predictably over time in order to drive meaningful emissions reductions.
- Coverage of policy should be as broad as practically possible.
- Aim to auction all allowances. The scope for free allocations should be narrow, rules-based, and transitional.
- Seek opportunities for linkage.
Learn more about these principles and associated recommendations, as well as the other efforts of Canada’s Ecofiscal Commission in advancing practical climate solutions here.