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Carbon pricing: a key
mechanism to drive down
urban GHG emissions
Low-Carbon “Skunk-Works”
Mandate:
Advance local
solutions to
climate change
and air
pollution.
Tools:
• $23M endowment
• Grants
• Impact investing
• Innovate,
demonstrate & derisk policies,
Toronto’s GHG reduction targets:
programs,
6% by 2012, 30% by 2020, 80% by 2050
technologies
(from 1990 level)
Best-kept secret: down 20% by 2011! • Small, motivated
team!
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Focus: reduce urban GHG emissions
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Carbon pricing: key design principles
Effective
• Adequate price signal to
achieve desired reduction
• Broad reach throughout the
economy
• Predictable to support
planning/decision-making by
affected parties
• Continuous improvement
(e.g. periodic reviews)
Efficient
• Low transaction
costs
• Easy and speedy
to implement
• Synergies and
complementarities
with other GHG
reduction
measures
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Carbon pricing: key design principles
Beneficial
• Clear benefits/value for
the public and wider
economy
• Fair and equitable -doesn’t burden
vulnerable populations,
doesn’t disadvantage
local players or earlyadopters
Transparent &
Accountable
• Clarity re: who pays
• Clarity re: where
the revenues go
• Clarity re: who
makes decisions
and how
• Rigorous
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application
Carbon pricing: Design Options
GHG impact depends on reach and signal strength
• Cap & trade
traditionally limited to
large emitters…not
many in cities
• Cap on bulk fuels -gasoline, natural gas –
like Califorina and
Quebec would cover
most urban sources
• Carbon fee reaches all
sectors of the economy
• Strategic pricing tools
can target key sources,
eg: increased Gas Tax;
shadow price (adder) in
gas conservation
planning; vehicle fuel
efficiency feebate
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Comprehensive plan to enable results
In addition to carbon pricing, Ontario’s climate strategy
must ensure cities can be key contributors to achieving
local and provincial GHG reduction targets.
• Buildings – efficiency
• Transportation – transit
through codes and
and active transportation
standards, “all cost
investment, planning
effective conservation”
requirements
and local employment • Local, low-carbon energy
• Waste – more
systems and generation
diversion, ie: ICI waste
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A strategic opportunity in Ontario
TAF is undertaking analysis, financing initiatives
to advance a robust Ontario climate change
plan, and advocating smart, city-focused
policies that will help Toronto achieve it’s GHG
reduction targets, recognizing that unless
urban emissions are dramatically reduced, the
province cannot meet it’s targets.
For more information, contact.
Julia Langer, CEO, [email protected]
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