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Canadas Carbon Pricing Landscape CARBON PRICING FORUM A DRIVER OF INNOVATION & RISK MITIGATION Washington DC March 19, 2019 1 Different Carbon Prices A Fragmented Market Pricing will differ between provinces. Ontario and Quebec


  1. Canada’s Carbon Pricing Landscape CARBON PRICING FORUM A DRIVER OF INNOVATION & RISK MITIGATION Washington DC March 19, 2019 1

  2. Different Carbon Prices A Fragmented Market  Pricing will differ between provinces.  Ontario and Quebec will see the price differential increase. The Ontario Delinkage has decreased our WCI price forecast.  The Federal Backstop system will allow the use of surplus credits as well as offsets that can be sourced across Canada for up 100% in 2019-2020 and 75% in 2021- 2022.  Offsets are expected to be scarce in the first years due to the fact that no offset system was yet implemented at the Federal level and that offsets from AB and BC might not be attracted by the lower priced Federal system.  The demand for offsets in the Federal system is expected to be around 6M/year.  ITMOs are mentioned in the Made in Saskatchewan Climate Change strategy and the OBPS doesn’t exclude them.  Arbitrage opportunities may arise. The CFS to be 2 implemented in 2022 will also add to this complexity.

  3. Contact Details Nicolas Girod Managing Director, Markets ngirod@clearbluemarkets.com 1 (347) 593-2130 www.ClearBlueMarkets.com 3

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