Serving the energy industry for over 30 years
By - Jon Brown

Canada’s Carbon Market Future 2016
Cap-and-Trade & Other Regimes for a Low-Carbon Future
December 5-6, 2016 | Toronto, ON

Overview

Canada is in a time of climate action transition: in December 2015, the Government of Canada endorsed the global climate change Paris Agreement, committing the nation to reduce greenhouse gas emissions by 30% below 2005 levels by 2030.  The Canadian Federal Government announced plans to introduce a national carbon price in an effort to achieve this goal. On a provincial level, Canada already has programs, both existing and in development, to reduce carbon pollution.  Ontario, Quebec, British Columbia and Manitoba have been working with a group of states in the western U.S. through the Western Climate Initiative, Inc. (WCI) to tackle climate change at a regional level through emission trading programs.  In December 2011, California and Quebec became the first WCI members to move forward with regional cap-and-trade programs to reduce emissions.  Since April 2015, Ontario has been developing a provincial cap-and-trade system to address the province’s emission reduction targets of 15% below 1990 emission levels by 2020 and 80% reductions by 2050. Ontario will launch the cap program in January 2017, and plans to join the linked California-Quebec market.

This conference will explore Canada’s de-carbonization initiatives, dedicating most attention to Ontario’s new cap-and-trade system.  The topics have been selected to inform power industry professionals and other entities subject to Ontario’s new carbon regulation. The program will draw on the expertise of key industry and regulatory representatives, alongside seasoned carbon market specialists, to consider the various compliance components and new business opportunities as a result of the cap.  Another focus of the event will be to evaluate Ontario within the context of North America’s budding carbon market, describing the nexus of the provincial cap-and-trade program with other carbon policy initiatives throughout Canada, the United States, and Mexico. Panelists will discuss considerations for Ontario’s intent to link with California-Quebec and Mexico in the near future, analyzing strategies for developing a fair and transparent auction process in the linked WCI market.  In addition, the program will address short and long-term planning needs in Ontario and Canada to effectively prepare for a reliable low-carbon future, exploring how carbon pricing will influence local generation and energy flows, and identifying transmission and renewable development needs.

Learning Outcomes

  • Review current Canadian, North American, and global carbon pricing and policy regimes
  • Discuss Ontario’s cap-and-trade program design, implementation timeline, and regulatory requirements
  • Identify how cap-and-trade will influence Ontario’s economy, electricity prices, domestic generation and imports/exports
  • Evaluate cost concerns for generation contracts raised by the cap-and-trade program
  • Review how current GHG reporting and verification practices and requirements may change under future regulation
  • Analyze market-based emission reduction strategies and compliance optimization methods
  • Examine optimal compliance pathways for utilities, independent power producers, local distribution companies and other load-serving entities
  • Evaluate resource and transmission planning needs for a low-carbon future
  • Identify opportunities for renewable energy development
  • Review carbon market business strategies for emission trading, offsets, and auctions
  • Assess the nexus of provincial carbon programs and the prospect of a federal carbon tax
  • Examine considerations for managing carbon price variations in the Northeast
  • Evaluate strategies to create an optimal North American carbon market
    • Ensuring fair and transparent auctions
    • Policy and technical considerations for linking Ontario with Mexico and California-Quebec

Credits

AP_Logo

EUCI has been accredited as an Authorized Provider by the International Association for Continuing Education and Training (IACET).  In obtaining this accreditation, EUCI has demonstrated that it  complies with the ANSI/IACET Standard which is recognized internationally as a standard of good practice. As a result of their Authorized Provider status, EUCI is authorized to offer IACET CEUs for its programs that qualify under the ANSI/IACET Standard.

EUCI is authorized by IACET to offer 1.2 CEUs for this event.

Requirements for Successful Completion of Program

Participants must sign in/out each day and be in attendance for the entirety of the course to be eligible for continuing education credit.

Instructional Methods

PowerPoint presentations, interactive dialogue and panel discussions will be used to present the material.

Agenda

Monday, December 5, 2016

7:30 – 8:00 a.m. :: Registration & Continental Breakfast

Setting the Stage

8:00 – 9:30 a.m. :: Climate Policy & Pricing: Global, North American, & Canadian Context

This session will provide a big picture overview and update on global environmental markets and carbon policy regimes, exploring the evolving international and North American landscape and influences on emerging local markets.

  • Carbon pricing program options
    • Cap-and-trade
    • Carbon tax
  • Key international policy instruments
  • Paris Agreement: key issues, outcome, and Canada’s commitment
    • Design for long-term agreement — goals and mechanisms needed to achieve
    • Implications for Canada and Ontario
  • Global state of carbon markets
  • North American carbon market drivers: history and current status
    • Western Climate Initiative (WCI)
    • S. EPA Clean Power Plan (CPP)
  • The Canadian scene
    • Federal carbon tax?
    • Compare/contrast Provincial programs
  • The nexus of Provincial and Federal carbon programs in Canada
  • Ontario’s Climate Action Plan and the role of cap-and-trade

Juliana Bruno, Consultant, London Economics International LLC

Katie Sullivan, Director, The Americas & Climate Finance, International Emissions Trading Association (IETA)

Kevin Poloncarz, Partner – Environmental and Energy Practice, Paul Hastings LLP

Ontario Cap-and-Trade and Compliance

9:30 – 10:15 a.m. :: Ontario’s Approach: Cap-and-Trade Program Design, Implementation and Regulation
  • Ontario’s emission status and exposure potential
  • History and process for developing the program and reasons for choosing cap-and-trade as a means of pricing carbon
  • Timeline of major developments and future execution
  • Cap-and-trade regulation
    • Proposed caps
    • Compliance periods and requirements
    • Auction and sale rules
    • Strategic reserve of allowances
    • Market rules such as holding limits and purchase limits
    • Allocations
    • Credit for early action
  • Major program features and overview of legal compliance options
    • Allowance allocation
    • Reserve price
    • Strategic reserve
    • Opt-in provision
    • Holding limits
    • True-up every three years
    • Offsets
  • Caps and compliance periods
  • Anticipated benefits and considerations for Ontario’s intent to link its program to the California-Quebec market
  • Plausibility of Federal carbon tax and resulting impact on Ontario’s carbon regulation requirements

Craig Golding, Cap-and-Trade Manager, Ministry of the Environment and Climate Change (MOECC)

10:15 – 10:30 a.m. :: Morning Break

10:30 – 11:45 a.m. :: Cap-and-Trade: Price, Economics, and Contracting Considerations

This session will discuss potential impacts to Ontario’s economy and electricity prices resulting from imposition of the cap-and-trade regime, exploring the influence of cap-and-trade and carbon pricing on the electricity market and pricing, domestic generation, and imports/exports of domestic generation.  It will also address challenges the program raises for generation contracts, considering who will take on the additional costs of carbon and subsequent implications for different scenarios.  Included will be a review of how the program impacts specific industries and companies by sector, with regard to:

  • Natural gas
  • Electricity/power sector/generators
  • Large commercial
  • Manufacturing
  • Mining
  • Transport/fuel sector perspective
  • Oil refiners
  • Distributors (gasoline and diesel)

Moderator: Sean Capstick, Principal, Golder Associates Ltd.

Darryl Yahoda, Director – Clean Energy Procurement, Independent Electricity System Operator (IESO)

David Butters, President, Association of Power Producers of Ontario (APPrO)

11:45 a.m. – 12:45 p.m. :: Group Luncheon

12:45 – 1:15 p.m. :: Current and Future Requirements: GHG Reporting Verification
  • Ontario reporting: guidelines, timelines and changes
  • Comparative overview of Ontario’s reporting and verification dates and thresholds with other jurisdictions
    • Which jurisdictions are improving their reporting mechanisms and upping the standard for Canada?
  • Emissions reporting requirements for Ontario’s:
    • Electricity generators
    • Electricity transmission and distribution systems
    • Electricity importers
  • Verification in Ontario
    • Current GHG reporting and verification practices and requirements in Ontario
    • Case studies from the power industry
  • Looking ahead — future compliance requirements
    • Changing reporting regulations
    • Impacts to current practices

Julie Tart, Senior Manager, ICF Canada

1:15 – 1:45 p.m.:: Decreasing Emissions Through Structural and Operational Changes
  • Actually reducing emissions to required levels — what would it take?
  • Management and operational considerations and risks
  • Optimizing plant efficiency to decrease GHG emissions
    • Energy conservation and efficiency
    • Appropriate heating and power plant fuel choices
    • Minimizing GHG fuel use during power production
  • Economic considerations for consumers and large end-users under cap-and-trade regulation

Ryan Duffy, President, Blackstone Energy Services Inc.

1:45 – 2:05 p.m. :: Natural Gas Compliance Mechanisms

Under Ontario’s cap-and-trade, natural gas distributors will be subject to a regulatory process by the Ontario Energy Board (OEB).  This session will explore what compliance means for natural gas distributors, in terms of:

  • Regulatory context and preparing for the Ontario Energy Board (OEB) framework
  • Program design elements of compliance
    • Program design, submittal and approval status
    • Estimate of cost for compliance
  • Components of a natural gas distributor compliance strategy:
    • Expanded reporting and verification of GHG emissions
    • Working with customer needs in mind to ensure compliance with cap-and-trade regulations relating to Ontario Energy Board (OEB) regulatory requirements
    • Getting business ready for carbon procurement
    • Collaborating with customers or solutions to mitigate or manage their GHG footprint
  • Considerations for effective compliance in the short and long-term
  • Levers for natural gas distributors as part of a lower-carbon economy:
    • Energy efficiency and conservation
    • Greening the natural gas grid
    • Natural gas vehicles
    • Innovation and technology development

Fiona Oliver-Glasford, Senior Manager – Carbon Strategy & Integrated Resource Planning, Enbridge

2:05 – 3:15 p.m. :: Ontario’s Low-Carbon Energy Future: Strategizing for Ontario’s Climate Action Plan

Cap-and-trade is only one component of Ontario’s Climate Change Action Plan (CCAP), an $8.3 billion five-year plan created by the provincial government to reduce its greenhouse gas emissions.  The CCAP lays out a strategy from 2017 to 2021, containing 80 different policies that are grouped into 32 different “actions.”  The plan estimates the amount of emissions each action will cut by 2020 and an associated price needed to achieve it.  This session will evaluate what Ontario’s future energy system will look like under the plan, assessing:

  • Highlights of Ontario’s Climate Change Action Plan
    • Actions expected to cause the largest emission cuts by 2020
  • The role of cap-and-trade in Ontario’s CCAP
  • Reinvestment of cap-and-trade revenues: where should all the money go?
  • Independent Electricity System Operator (IESO) analysis supporting Ontario’s long-term energy plan and related climate change polic
  • Resource, development, and transmission planning and considerations
  • Renewable energy development opportunities from climate change policy in Canada
  • Ensuring climate resilience and adaptation as a province

Moderator: Jason Chee-Aloy, Managing Director, Power Advisory LLC

David Butters, President, Association of Power Producers of Ontario (APPrO)

Michael Crawley, Executive Vice President, Northland Power

John Godfrey, Special Advisor on Climate Change, Ontario Ministry of Energy

Darryl Yahoda, Representative- Planning Group, Independent Electricity System Operator (IESO)

3:15 – 3:30 p.m. :: Afternoon Break

3:30 – 5:00 p.m. :: Carbon Market Business Strategies: Managing Risk, Transactions and Compliance

This session will draw on the experience of power industry and carbon market experts who have participated in the two existing North American cap-and-trade programs — the California-Quebec market and the Regional Greenhouse Gas Initiative (RGGI Inc.) — to consider lessons learned with regard to carbon market finance, transactions and compliance strategies.  Speakers will address:

  • Lessons learned from the California-Quebec and Regional Greenhouse Gas Initiative (RGGI) Markets
    • Market risks
    • Program design impacts (holding limits, auctions, price floors)
    • Revenue recycling outcomes
  • Understanding the growing carbon market: trading and market concerns
  • Offset compliance mechanisms in Ontario
    • Development and use of carbon offsets in Ontario and WCI jurisdictions
    • Offset use from practitioner’s perspective
    • Market analysis on supply and demand for offsets in regulated WCI jurisdictions and in voluntary markets
  • Considerations for voluntarily opting in to Ontario’s cap-and-trade
    • Determining if it is in an organization’s financial best interest to opt-in
    • Applying for free allowances

Moderator: Julie Tart, Senior Manager, ICF Canada

Ryan Duffy, President, Blackstone Energy Services Inc.

Mittal Monani, Environmental Commodities Trader, Capital Power Corporation

Stephen McComb, Director – US Environmental and Coal Markets, Intercontinental Exchange (ICE)

5:00 – 6:00 p.m. :: Networking Reception


Tuesday, December 6, 2016

7:30 – 8:00 a.m. :: Continental Breakfast

III. Optimizing North America’s Carbon Market

8:00– 9:30 a.m. :: North American Carbon Market Update

This session will provide an update on the current state of carbon policies and programs in North America, describing the status of various policies and programs, both existing and in development. It will consider:

  • Legal issues and regulatory framework for United States climate policy
    • United States’ EPA Clean Power Plan (CPP)
    • California landscape post-2020
  • Possible outcomes of Clean Power Plan (CPP) implementation
  • Regional Greenhouse Gas Initiative (RGGI):
    • Structure, how it’s worked, challenges going forward
    • CPP impact/opportunities
    • RGGI – WCI: Implications going forward
  • Western Climate Initiative (WCI) Auction Updates
    • Overview of revenues from 2016 auctions
    • Implications for ‘low’ auction results in the spring 2016 California-Quebec market
  • Mexico: climate policy update and future prospects for WCI linkage
  • What all of this means for Ontario and Canada’s emerging carbon markets

Moderator: Ashley Lawson, Senior Solutions Fellow for Policy and Resilience, Center for Climate and Energy Solutions (C2ES)

Xantha Bruso, Manager of Long-Term Energy Policy & Procurement, Pacific Gas & Electric (PG&E)

Paul Hibbard, Vice President, Analysis Group (Former Chair, Massachusetts Dept. Public Utilities)

Kevin Poloncarz, Partner – Environmental and Energy Practice, Paul Hastings LLP

9:30 – 9:45 a.m. :: Morning Break

9:45 – 10:15 a.m. :: Managing Carbon Price Variations in the Northeast

Confusion exists over how the multiple, complex, and layered carbon policies and programs will be managed across North America in the coming years.  This is especially true for the northeast part of the continent, a region that contains carbon prices under both the Regional Greenhouse Gas Initiative (RGGI) and Western Climate Initiative (WCI) — and jurisdictions with no price yet, but that may adopt one under the U.S. Clean Power Plan (CPP).  This session will look at what the overall economic and environmental impacts of this scattered pricing might look like.  It will analyze how variations in different generator carbon price offers across jurisdictions could substantially change power flows between regions, and what impact this could have for Ontario and the region as a whole.

Paul Dabrowski, Senior Advisor – Modeling & Analytics, Ontario Power Generation

10:15 – 11:45 a.m. :: Closing Panel: Optimizing Canadian and North American Carbon Markets

The closing panel will integrate the learning and information presented through the conference, considering how to best move forward to create an optimal carbon market in North America, and what that will mean for Canada and Ontario specifically.  It will consider:

  • Resolving disparate views on the goal of carbon markets
    • Effectively lowering emissions vs. raising revenues at quarterly auctions
    • Cap-and-trade revenue reinvestment
  • Impacts from a potential Canada federal government national carbon price
    • If the price is set higher than WCI credits, what does that mean for cap-and-trade in Canada?
  • Policy and technical considerations for linking markets
  • Ensuring fairness and transparency in linked markets and auction process
    • How can Ontario ensure a fair and transparent market for the province when linking to California-Quebec and Mexico?
  • Offset markets in North America — current status and potential
  • Canada, the U.S. and Mexico: strategies to cooperate on carbon trading
    • Opportunities for a common emissions market
    • Assessing stringency and transparency of trading system
  • Optimizing future auctions for Ontario

Moderator: Yvan Champagne, President, Blue Source Canada

Craig Golding, Cap-and-Trade Manager, Ministry of the Environment and Climate Change (MOECC)

Xantha Bruso, Manager of Long-Term Energy Policy & Procurement, Pacific Gas & Electric (PG&E)

Scott Hernandez, Vice President – North America, CBL Markets

Ashley Lawson, Senior Solutions Fellow for Policy and Resilience, Center for Climate and Energy Solutions (C2ES)

 

Workshop

In-Depth Compliance Planning and Preparation for Cap-and-Trade

Tuesday, December 6, 2016

12:30 – 1:00 p.m. :: Registration

1:00 – 4:30 p.m. :: Workshop Timing

*Attendees will need to bring a personal laptop to this workshop to participate in virtual exercises.

Overview

This interactive workshop will focus on strategies for industry compliance with Ontario’s cap-and-trade program, providing a deep-dive of technical, practical tips and tools to develop an optimal compliance strategy.  It will evaluate best practices to mitigate risk and improve business opportunities, featuring an interactive, intimate dialogue with subject matter experts.  Attendees will participate in a hands-on mock auction as well as virtual compliance exercises on an online compliance tracking platform.

Learning Objectives

  • Participate in a hands-on mock auction exercise
  • Examine technical and policy considerations for developing an optimal compliance strategy specific to your business
  • Evaluate practical industry tips and tools from seasoned carbon market experts
  • Review real world solutions and lessons learned for successful performance in cap-and-trade markets
  • Engage in virtual compliance exercises on an online compliance tracking platform

Agenda

  1. Introduction and Team Assignments for Mock Auction
  2. Emissions Trading & Allowances: Fundamentals & Expert Advice
    • Fundamentals of emission trading/auctions
    • Emission units, allowances and early reduction credits
    • Legal framework
    • Mechanics of trading and auctions
    • Industry tools and practices for trading and auctions
  3. Understanding the Offset Mechanism: Risks, Rewards and Types
    • Understanding Ontario’s offset mechanism
    • Deciding the role of offsets in your compliance strategy
    • Review of different offset project types
    • Considerations for developing an offset project
      • Financial due diligence
      • Third party involvement
      • Managing project risk
  4. Virtual Compliance Tracking Exercises
  5. Mock Auction: Portfolio Optimization
    • “Hands-on” auction exercise
    • Exploration of portfolio optimization techniques
      • Implementing strategic and operational initiatives
      • Managing customer costs and portfolio risks
      • Hedging cap-and-trade financial exposure

WORKSHOP INSTRUCTORS

Sean Capstick Principal, Golder Associates Ltd.

Sean Capstick, P.Eng. is a Principal with over 25 years of environmental compliance experience in Golder’s GTA Operations Atmospheric Services Group that provide a full suite of GHG, Climate Change, Permitting and Environmental Assessment services.   He provides specialized expertise on strategic and regulatory advice to clients regarding the development of emission inventories recognized as a leading expert in Air Quality services including the emerging GHG framework, and is Golder’s Global Climate Change Technical Community Leader.  Mr. Capstick has valuable expertise in GHG emissions management issues including, quantification methods, mitigation measures, measurement techniques and practical implementation of emissions reduction strategies.  He has worked for clients in a variety of industry sectors such as cement, aggregate processing, chemical processing, electricity generation fertilizer manufacturing, mining, petrochemical, steel manufacturing, landfills, natural resources and properties management.  He is sought after by industry, municipalities and legal firms for guidance and practical solutions in regulatory and technical matters related to the environmental permitting process and climate change.   Mr. Capstick is also currently directing projects with a number of industrial associations to assist them through data analysis and negotiations with the government on new proposed provincial and federal GHG legislations for their sector.

Mittal Monani, Environmental Commodities Trader, Capital Power Corporation

Mittal Monani manages the U.S. Carbon portfolio for Capital Power (TSE: CPX), a Canadian independent power producer with more than 3,200 MW of generation capacity across North America. Based in Calgary, Mr. Monani is active in California-Quebec carbon allowances and offsets, RGGI, voluntary credits, and other related products.  He is an experienced trading and origination professional with a strong background in energy and environmental markets at leading global energy organizations. In addition to the U.S. Carbon markets, Mr. Monani has extensive experience in other environmental commodities, natural gas, and coal markets in North America and Europe, and has held positions with both BP Canada and TransAlta earlier. Prior to working in the energy industry, he spent many years at a number of high-tech companies in various roles as a software R&D professional. 

Speakers

Juliana Bruno, Consultant, London Economics International LLC

Xantha Bruso, Manager of Long-Term Energy Policy & Procurement, Pacific Gas & Electric (PG&E)

David Butters, President, Association of Power Producers of Ontario (APPrO)

Sean Capstick, Principal, Golder Associates Ltd.

Yvan Champagne, President, Blue Source Canada

Jason Chee-Aloy, Managing Director, Power Advisory LLC

Michael Crawley, Executive Vice President, Northland Power

Paul Dabrowski, Senior Advisor – Modeling & Analytics, Ontario Power Generation

Ryan Duffy, President, Blackstone Energy Services Inc.

Craig Golding, Cap-and-Trade Manager, Ministry of the Environment and Climate Change (MOECC)

Scott Hernandez, Vice President – North America, CBL Markets

Paul Hibbard, Vice President, Analysis Group (Former Chair, Massachusetts Dept. Public Utilities)

Ashley Lawson, Senior Solutions Fellow for Policy and Resilience, Center for Climate and Energy Solutions (C2ES)

Stephen McComb, Director – US Environmental and Coal Markets, Intercontinental Exchange (ICE)

Mittal Monani, Environmental Commodities Trader, Capital Power Corporation

Fiona Oliver-Glasford, Senior Manager – Carbon Strategy & Integrated Resource Planning, Enbridge

Kevin Poloncarz, Partner – Environmental and Energy Practice, Paul Hastings LLP

Katie Sullivan, Director, The Americas & Climate Finance, International Emissions Trading Association (IETA)

Julie Tart, Senior Manager, ICF Canada

Darryl Yahoda, Director – Clean Energy Procurement, Independent Electricity System Operator (IESO)

Location

Sheraton Centre Toronto Hotel
123 Queen St W
Toronto, ON M5H 2M9

To reserve your room, please call 1-416- 361-1000
Please indicate that you are with the EUCI group to receive the group rate.

Room Rate:

The room rate is $CAD 229.00 single or double plus applicable taxes.

Room Block Dates:

A room block has been reserved for the nights of December 4 – 5, 2016.

Rate Available Until:

Make your reservations prior to November 4, 2016. There are a limited number of rooms available at the conference rate. Please make your reservations early.

Register

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Sponsors
blackstone blue-source-logo
Supporting Organization
carbon-pulse

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