Law Times

LAW TIMES / FEBRUARY 1, 2010 NEWS PAGE 5 ing requirements for business- es, but environmental lawyers are so far telling clients to act cautiously when it comes to the province's newest piece of climate change legislation. Ruth Elnekave, an associate at Stikeman Elliott LLP who deals with energy and emissions trad- ing issues, says the best advice lawyers can give their clients on the Environmental Protection Amendment Act is to just be patient and not rush too quickly into making decisions. "It's all a matter of being cau- tious and not spending too much too quickly," she says. The act, passed by the Ontario legislature this past December, will allow the province to imple- ment a cap-and-trade system for greenhouse gas emissions. Ontario is a member of the Western Climate Initiative, along with three other prov- inces and seven U.S. states, in an attempt to develop a transcontinental greenhouse gas reduction framework. The government has also passed a regulation specify- ing that companies within 26 industrial sectors will be required to collect emissions data. But only facilities that emit the equivalent of at least 25,000 tonnes of carbon diox- ide must report their data. The first reports will cover emissions for 2010. Companies will have to submit them by June 1, 2011. The new reporting measures and eventual emissions caps mean businesses will have to fig- ure out the best way to be eco- nomically and environmentally efficient, especially given that there is no definitive answer on how to do that so far. "It depends on the type of technology that's available. It might be more economical to rely on [carbon] offsets and then a few years later to invest Lawyers advise caution on new climate change rules O BY BENJAMIN GLATT Law Times ntario has just unveiled new green- house gas monitor- in newer technology when it's cheaper," Elnekave says. Paul Manning, an environ- mental law specialist at Willms & Shier Environmental Lawyers LLP, is putting a little more responsibility on clients, saying they always knew they would be subject to emissions caps. "We're telling the companies to try to anticipate what will be coming down the pipe to be in a position to either reduce green- house gas emissions or to make the financial provisions to buy offsets," he says. Environmental lawyer Dianne Saxe, though, warns about being too eager given the uncertainty that remains. A lot of municipali- ties had recently started spend- ing large amounts of money to create landfill gas capture proj- ects in order to generate carbon "The early adopters get the experience but are punished when the law comes up," she says. "Now, companies should just start learning about the environmental issues and the standards." Part of the uncertainty comes 'I can say we know carbon will be expensive. But everything else is hard to predict,' says Dianne Saxe. credits, but the province under- mined those plans when it made the projects mandatory. Pension titles from the volatility in cap-and- trade markets. The European Union's program has been some- what unsuccessful due in part to efforts by well-connected compa- nies to lobby for higher emission limits. As a result, the price of carbon credits crashed to about US$1 a tonne in early 2007. Still, although the price for credits may decline because of excess supply, the cap-and-trade system would still be a success as long as the carbon market remains untainted. That's the case even though companies will always go for the cheapest solu- tion. "The system is about reduc- ing greenhouse gases and not worrying about who does it," says Manning. In the meantime, there are still plenty of variables unac- counted for in a political and regulatory environment that is changing quickly. While Ontario has committed to the Western Climate Initiative's goal of reduc- ing emissions by 15 per cent over 2005 levels in the next 10 years, the federal government has yet to unveil specific regulations for its climate change plans. As a result, uncertainty continues to plague the field of greenhouse gas regu- lation, says Saxe. "I can say we know carbon will be expensive. But everything else is hard to predict. We're in pretty uncertain times." LT Estates, Trusts and Pensions Journal Covers new trends in estates and trusts with special coverage of pensions issues. Includes informative articles, insightful comments on important cases and a discussion of useful texts. Parts and Bound Volume $185 • P/C 0335090999 Back volumes $134 • P/C 0335100999 ISSN 1487-3656 Federal & Ontario Pension Legislation When you need to keep up to date on pension legislation across Canada and in Ontario, this is the place to turn to. 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Prices subject to change without notice, to applicable taxes and shipping & handling. 1/27/10 9:46:01 AM Mediating Estate Disputes Family Law in Ontario: A Practical Guide for Lawyers and Law Clerks O'Brien's Encyclopedia of Forms, Eleventh Edition, Ontario - Family Law, Division VI Preparation of Wills and Powers of Attorney: First Interview to Final Report, Third Edition For a 30-day, no-risk evaluation call: 1.800.565.6967 CA082 CA082 (LT 1-4x5).indd 1 www.lawtimesnews.com Canada Law Book is a Division of The Cartwright Group Ltd. Prices subject to change without notice, to applicable taxes and shipping & handling. 1/27/10 9:50:22 AM Susan G. S eller Consulting Editor: Susan G. Seller Editor- Editorial Board: Cy Fien, Gordon MacRae, Timothy Matthews, Q.C., Marilyn Piccini Roy, Catherine Roberts and W in- Chief: Marni M.K. Whitaker illiam Fowlis Mary L. MacGregor Editor: James H Pensions Consultant: Ben Dibben erbert Michael G. Cochrane Susan A. Easterbrook and Francine A. H erlehy

• Cover
• Boycott Ends
• Judicial Retirement
• Focus On Family Law/Trusts and Estates