Buy and Sell Allowances
Participants in the cap and trade (C&T) program can buy and sell greenhouse gas (GHG) emissions allowances in the carbon market. Allowances are financial instruments that add a revenue. Excess emissions are an unfunded liability.
Allowances are bought at the Western Climate Initiative (WCI) joint auctions (California, Quebec, and Ontario), and also over-the-counter (OTC) from a registered market participant in the program.
During the compliance period, emissions for each vintage year, for example 2017, must be trued-up with equivalent allowances from any of the three jurisdictions by the end of the compliance period. Ontario’s first compliance period started January 1, 2017 and ends on December 31, 2020.
Allowances are sold OTC only through a registered market participant in the program like SMV Energy Solutions.
Need to sell surplus allowances?
Profit from GHG reducing actions by selling your surplus allowances OTC with a registered market participant. This is the only option when selling allowances. SMV Energy Solutions is a registered market participant in the Ontario jurisdiction of the WCI that links the California, Quebec, and Ontario C&P programs. Complete confidentiality is assured.
Contact us when you want to sell your allowances OTC with SMV Energy Solutions.
Need to buy allowances OTC?
Buy allowances OTC at any time with far fewer mandatory administrative requirements than buying them at the joint auction, and with greater certainty of success. The process is a lot faster, too – 3 days. SMV Energy Solutions is a registered market participant in the Ontario jurisdiction of the WCI that links the California, Quebec, and Ontario C&T programs, and we can broker your purchases of allowances with strict confidentiality.
Contact us when you want to buy allowances OTC with SMV Energy Solutions.
Need to buy allowances at auction?
Market participants can buy a maximum of 4% of the allowances available for sale at a joint auction. As a registered market participant in the Ontario jurisdiction of the WCI that links the California, Quebec, and Ontario C&T programs, SMV Energy Solutions can purchase allowances at the joint auction with complete confidentiality.
Contact us if you want SMV Energy Solutions to buy emissions allowances on your behalf at the joint auction with complete confidentiality.
Need help in buying allowances at auction?
Buying emissions allowances at the joint auction requires strict compliance to the auction protocol, and schedule. There are more than 15 steps, and failure to adhere to them over the 70-day period annuls participation at the joint auction. At the end of the auction, you may or may not have success.
Without a dedicated person for C&T, the strict compliance and administrative requirements may not be adhered to. This puts the company and members of the board of directors at risk of being fined, penalized, or being convicted for 5 years. SMV Energy Solutions can help with your administrative requirements of the C&T program. To do so requires the written authority of the chief officer, or board of directors.
Contact us if you want one of SMV Energy Solutions’ agents to assist in the administration of your C&T account.