The Winds of Change
By Michael Butters,
PERT

In Ontario, we care about which way the wind blows. Each year, an estimated 516,000 metric tonnes of NOx emissions flow from bordering US States into Ontario and Quebec. Reducing these emissions is both a challenge and an opportunity for upstream industries.

PERT
For the past five years, the Pilot for Emission Reduction Trading (PERT) has been focused on how to meet the dual objectives of environmental sustainability and economic efficiency on a large scale and cost-effective basis. While regulatory bodies wrestle with the social and political implications of emissions trading, PERT has been learning the mechanics of how to conduct reviews and construct an effective trading system. Through its "learning by doing" approach, this industry-led multi stakeholder group has been testing the waters with real projects, by identifying and resolving the various issues that arise. The practical knowledge gained by such a process has resulted in the design of proposed trading rules and system, analysis of a number of key issues, and the review – and subsequent posting – of millions of metric tonnes of reductions. It is through this process that upstream industries can find a market.

Clean Air Canada
The success of the pilot has led to the formation of a new organization, Clean Air Canada Incorporated. The role of this not-for-profit incorporated company is to act as the key facilitator and developer of the ERT market in Canada. Its members consist of representatives of industry, environment and government.

Based largely on the PERT model, CAC has constructed a rigorous and efficient operation; one that will stand up to scrutiny and help establish the performance standard for the industry. At the heart of the organization is a very robust review process. Each application is tested for compliance with the criteria of Real, Surplus, Quantifiable, Verifiable, and Unique. Proponents are required to meet these (and other) criteria, and exceed current levels of performance.

This independent third party review provides a much-needed sense of stability, rigour and predictability for potential buyers.