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LEGAL REPORT: ENERGY AND THE ENVIRONMENT A voluntary futures market called the Montréal Climate Exchange opened this spring, and carbon credits were trading this summer for about $11 per tonne, says Piette. But when the market be- comes regulated, their value could in- crease substantially, he says, noting that in the United Kingdom they were selling for $35 per tonne. "I personally think the Canadian carbon market will develop. Perhaps it will start up slowly, but as the regulatory system fi ts in place, as the regulations become binding, I think the marketplace is there to stay and it will play a useful role," he says. The clean-tech fund, into which pollut- ers can initially pay $15 per tonne rather than buying carbon credits, will likely put a brake on the price of carbon credits initially, but that option will be steadily phased out, disappearing by 2018. After that non-compliant industries will be forced to buy carbon-offset credits for their excessive GHGs at the market rate. How big can the carbon-offset market become? Judging by the European experi- ence, where it's grown to $50 billion just three years after its inception, it will likely be large. Total world trading in carbon is around $64 billion. With regulations forc- ing the big emitters to purchase carbon credits, that new demand will encourage green industries, says Matt McCullough, co-director of corporate consulting ser- vices for the Alberta-based Pembina Insti- tute. "In a business opportunity perspec- tive, it's huge for green technology dealing in energy effi ciency and renewables." The fact that businesses, such as those install- ing thermal panels on houses or develop- ing anaerobic waste digestive systems to keep methane gas out of the atmosphere, can sell carbon credits will defi nitely in- crease their viability, says McCullough. The higher the price of carbon credits, the more encouragement there is for green businesses, and the more incentive for major emitters to cut down. Many types of projects could earn car- bon credits. Under the Clean Develop- ment Mechanism that governs countries that have ratifi ed the Kyoto Accord, they include renewable energy such as wind power, captured energy ineffi ciencies, captured fugitive emissions, and con- version of waste materials. In Alberta's scheme, approved projects also include new forestation, recovery of landfi ll gas, and improvements in pork and beef- raising practices. Ron Ezekiel, an environmental and commercial lawyer in the Vancouver offi ce of Fasken Martineau DuMoulin LLP, says the emphasis in the federal plan on carbon capture and sequestra- tion — storing carbon emissions in underground caverns — could provide major opportunities for businesses, es- pecially in the oil patch. Finding inves- tors in such projects shouldn't be diffi - cult, he says. For instance, institutional investors, such as pension funds, could put their money into offset projects. There likely will be "growing pains" with the carbon market. A report by the World Bank also cites delays of a year in the approval of projects under the Kyoto Accord's Clean Development Mechanism Glenn Zacher and Patrick Duffy Original author: The Honourable Mr. Justice David M. Brown Shedding light on the complex legislative and regulatory framework governing the Ontario natural gas and electricity industries Taken over by energy law practitioners, Glenn Zacher and Patrick Duffy of Stikeman Elliott, with original material by The Honourable Mr. Justice David M. Brown, Energy Regulation in Ontario is your most authoritative source for gaining an appreciation of the laws, regulations and policy directives governing the Ontario energy market and industry. In fact, it's the only publication available that analyzes the legal regime affecting each segment of the market and industry – i.e., generation, transmission, distribution, wholesaling/trading and marketing/retailing. Energy Regulation in Ontario contains everything you need to understand the intricacies of the open market for natural gas and electricity. Regularly updated to reflect the latest changes, this book explores: Electricity Act, 1998 and the Ontario Energy Board Act, 1998 to date This is a must-have resource for anyone in the energy sector who wants to successfully navigate through this complex regulatory landscape. www.canadalawbook.ca 60 SEPTEMBER 2008 www. C ANADIAN Law ye rmag.com Zacher_Energy Regulation in Ontario (CL 1-2h).indd 1 7/30/08 9:36:18 AM