Investments into…

Investments into infrastructure, transportation, and environmental action is imperative to transform Ontario’s future. Our province has a wealth of innovation and opportunity to make effective investments to secure a future that Ontarians will be proud to live in. This comment is being submitted on behalf of the Residential Sector Committee of Climate Action Waterloo Region (hereinafter referred to as ClimateActionWR). The comment outlines the collective support for climate action, the major concerns with Bill 4, and the potential investments from cap-and-trade.

Collective Support for Climate Action
We, the Residential Sector Committee of ClimateActionWR, are writing in full support of maintaining the cap-and-trade system.
Waterloo Region’s short-term greenhouse gas (GHG) emissions reduction target of 6%, by 2020, prompts climate action and commitment from community members, leaders, and organizations. Importantly, this target has made progress due to provincial efforts to curb climate change and take action, in combination with local action.

The need for climate action is urgent and the cap-and-trade system is a proven program for GHG reductions through cost-effective systems that brought in revenues and distributed them as shown in British Columbia and California. Ultimately, Section 7 (1) in Bill 4, the cancellation of cap-and-trade instruments, prevents meeting the needs of society and advancing our future into one that includes low-carbon investments.

Over the years, our committee has worked with homeowners, home-builders, and renovators throughout Waterloo Region to advance GHG reductions in the residential sector. We are committed to helping the residential sector understand, adopt, and take positive action toward GHG reductions. Our committee has moved the needle on many fronts to reduce GHG emissions in the residential sector throughout the last few years This includes:

●working with the federal government to bring sustainable energy efficiency practices to home builders and renovators by helping develop the pilots for Local Energy Efficiency Partnerships (LEEP) for Existing Homes
●working with local utility companies on their residential conservation and energy demand programs
●bringing awareness of incentive programs that help people reduce energy use at home
●participation in development the Region’s Community Energy Investment Strategy that will keep investments in the community

Communities across this province including our local municipalities have all endorsed a target of 80% GHG emissions reductions by 2050. To that end, the municipalities have started taking positive steps to meet those goals. We believe that Bill 4, Cap and Trade Cancellation Act does not allow for investments into our future that collectively benefits residents, communities, and organizations.

Bill 4: Major Concerns
●Sections 7(1) and 7(2) do not adequately identify that the government will pursue alternative options to a cap-and-trade system to take climate action.
●Sections 7(1) and 7(2) prevents residents and organizations from pursuing viable opportunities to reduce their greenhouse gas emissions through incentivized programs.

The lost revenue from repealing a cap-and-trade program would stagnate action that would reduce emissions and transform Ontario’s future into one that includes low-emissions, a healthy society, and a thriving economy.

Investing in our future: Cap-and-trade
The cap-and-trade system enables investments into schools, buildings, and homes, which in turn boosts job growth and economic development. Through a cap-and-trade system, incentives kick start climate action among residents. Specifically, recent research from C40 Cities, the Global Covenant of Mayors for Climate & Energy, and the New Climate Institute found that “investments into residential energy efficiency retrofits, could result in a net creation of 5.4 million jobs in cities across the globe. Such investments would also result in significant household savings, as well as emissions reductions.” This research is important to consider in the province’s development of a climate action plan, which should include investments into the residential sector.
Further, an effective cap-and-trade system helps residents, the community, province, and society as a whole.

●Homeowners benefit with conservation reductions, which are generally persistent savings that protect against future increases in utility rates.
●Conservation projects are jobs in the community keeping jobs in the local area.
●Conservation is the lowest-cost form of energy production. Conservation costs less to produce a kWh of energy than either conventional energy or alternative energy.
●There is reduced infrastructure spending on increasing energy supply.
●Innovation that is developed here enables an opportunity to build jobs and industries for the future of the province.

There are also benefits of GHG reductions that go beyond climate change mitigation. They also reduce pollution which has significant health care costs associated and a quality of living benefit that makes the communities and province a more desirable place to live.

Conclusion
Ultimately, our committee does not support Bill 4: Cap and Trade Cancellation, 2018, and we urge that the government reconsiders repealing the cap-and-trade system. Our committee believes that the government still has the opportunity to develop programs using money that will benefit homeowners, builders, renovators, developers, and others directly involved in the residential sector through reducing GHGs. We would be pleased to consult with the Ministry to look at methods and strategies to attain our long-term 80% GHG emissions reduction target, alongside other cities in Ontario, which could be attained through practical and innovative action.

Sincerely,

Residential Sector Committee, ClimateActionWR