To protect the integrity of the Cap &Trade (C&T) program, the Ministry of the Environment and Climate Change (MOECC) operates it like a securities market with strict accountability, transparency, and enforcement, and it makes the chief officer, or members of the board of directors of the participants directly responsible.
The program requires the individual with the most senior executive position in the entity, or the board of directors to be directly involved due to the millions of dollars involved. The program has strict requirements, compliance obligations, and deadlines. Non-compliance is an offence under the Act with fines up to $4 million applied to the officers and directors, and up to $6 million applied to the company. Specific offences are subject to initial base penalties of thousands of dollars that escalate if not addressed. Please contact your lawyer for further details.
Mandatory and voluntary participants have an obligation to their chief officer, board of directors, and shareholders to report their progress to true-up their greenhouse gas emissions (GHG) and allowances by the end of the first compliance period ending December 31, 2020. An excess of allowances is a source of revenue, and an excess of emissions is an unfunded liability that can be millions of dollars.
As a financial reward to encourage capped participants to true-up early in the first compliance period, the Ontario government has set aside for free 2 million allowances as a one-time incentive. Do not lose out on this great opportunity to gain an extra stream of revenue while improving your operations.
SMV can provide independent verification of a company’s status of its emissions and allowances for governance or reporting purposes.
Please Contact us for further information.