Program Details

Key dates

• April 6, 2023 – Application period opens for the first auction
• May 1, 2023 – Deadline for 2023 GHG report and verification
• May 8, 2023 – Application period closes for first auction
• May 26, 2023 – Bid guarantees due for first auction
• June 7, 2023 – First auction held
• June 23, 2023 – Application period opens for second auction
• July 24, 2023 – Application period closes for second auction
• August 10, 2023 – Bid guarantees due for second auction
• August 22, 2023 – Second auction held
• September 1, 2023 – Application period opens for the reserve sale
• October 2, 2023 - Application period closes for reserve sale
• October 20, 2023 – Bid guarantees due for the reserve sale
• November 1, 2023 – Reserve sale held

Legislation

Amendments to the Environment Act allow government to create the cap-and-trade program and regulations to support it.

Cap-and-trade program regulations

The Cap-and-Trade Program Regulations and framework document (PDF) outline how the program works. They include greenhouse gas emission caps, rules for distributing, buying and selling greenhouse gas allowances, and other details.

Reporting emissions and participating in cap and trade

The following types of companies must report their greenhouse gas emissions, get them verified by a third party, and participate in the cap-and-trade program:

• facilities that generate 50,000 tonnes of greenhouse gas emissions or more per year from one or more specified activities
• petroleum product suppliers that first place or produce 200 litres of fuel or more per year for consumption in the Nova Scotia market
• natural gas distributers that deliver natural gas for consumption in Nova Scotia that, when combusted, produces 10,000 tonnes of greenhouse gas emissions or more per year
• electricity importers with 10,000 tonnes of greenhouse gas emissions or more per year from imported electricity consumed in Nova Scotia

Reporting regulations

The rules for reporting greenhouse gas emissions are outlined in:

• Quantification, Reporting, and Verification of Greenhouse Gas Emissions Regulations
• Standards for Quantification, Reporting, and Verification of Greenhouse Gas Emissions (PDF)

Greenhouse gas emission data for 2017 (PDF), 2018 (PDF), 2019 (PDF), 2020 (PDF) and 2021 (PDF) reported under these regulations are available.

Petroleum product pricing regulations

Amendments to the Petroleum Product Pricing Regulations allow the Utility and Review Board to apply the carbon price to gas and diesel.

Program participants

The following are mandatory cap-and-trade program participants:

Summary of Market Transactions

As transactions occur between companies in the cap-and-trade program, this section is updated to provide annual summaries of those transactions. 

2019: No transactions occurred

2020: Summary of transactions

2021: No transactions occurred

Reporting emissions

• Companies must use the standard reporting form to submit greenhouse gas emissions reports and any additional information listed in the regulations and standards to Nova Scotia Environment.
• Reporting via SWIM is preferred. Follow the instructions (PDF) to register on SWIM. You must register before you can use it. Otherwise, reports can be submitted to GHGreporting@novascotia.ca.
• Greenhouse gas emissions reports must be verified by an accredited third-party organization. Lists of eligible verification bodies are available at:
  • Standards Council of Canada (SCC)
  • American National Standards Institute (ANSI)
• An attestation form must accompany greenhouse gas emissions reports for fuels sold to a facility that is participating in Nova Scotia’s cap-and-trade program.
• This attestation form may also be used to document fuels that are exported outside of Nova Scotia or used exclusively in aviation or marine applications. Other documentation deemed acceptable by the verification body may also be used.

Registering in the program

Registration for the cap-and-trade program is now open. Participating companies must register using the Compliance Instrument Tracking System Service (CITSS)

Registration requirements are outlined in Section 5 of the Cap-and-Trade Program Regulations. Forms and documents required for each part of the registration process are below, along with guidance on how to complete the registration:

Part 1 – user registration

• Guidance for user registration (PDF)
• User registration checklist (printed from CITSS)
• User registration form (printed from CITSS)
• Proof of identity form (printed from CITSS)
• Identity Verification and Attestation Form (PDF)
• Acceptable government-issued identity documents (PDF)
• Letter of Authorization (PDF)
• Letter from a Financial Institution (PDF)
• CITSS Cross-Jurisdiction User Form (PDF)
• Request to Change/Add Account Representatives/Account Viewing Agents (PDF)

Part 2 – account application

• Guidance for account application (PDF))
• Account application checklist (printed from CITSS)
• Account application form (printed from CITSS)
• Business Relationship Disclosure Form (PDF)
• Request to Add a New Facility or Change Facility Information Form (PDF)
• Request to Change Ownership Form (PDF)

Please send any questions about the registration process to capandtradehelp@novascotia.ca

Participating in auctions

60 days before an auction, the province will provide notice with details about participating in the event. Mandatory participants registered in the program may take part in an auction of emission allowances. Each auction participant must register as a bidder no later than 30 days before the auction and submit a financial guarantee to the province no later than 12 days before the auction.

Auctions will be administered through CITSS and Auction Platform. Each auction will have a single round of bidding using sealed bids. The emission allowances will be auctioned in lots of 1,000 emission allowances. The minimum price per allowance will increase annually by 5% plus inflation.

For auctions held in 2023, the minimum price will be $25.72.

Further details about auctions are available in the resources below:

• Auction participant training (PDF)
• Auction FAQ (PDF)
• Auction user guide (PDF)
• Auction examples (PDF)
• Detailed auction requirements and instructions (PDF)
• Example Letter of Credit and Letter of Guarantee (PDF)
• Consignment guidelines (PDF)

Auction Notices and Results

June 10, 2020

• Auction Notice (PDF)
• Auction Results (PDF)

December 2, 2020

• Auction Notice (PDF)
• Auction Results (PDF)

June 9, 2021

• Auction Notice (PDF)
• Auction Results (PDF)

November 23, 2021

• Auction Notice (PDF)
• Auction Results (PDF)

June 8, 2022

• Auction Notice (PDF)
• Auction Results (PDF)

December 7, 2022

• Auction Notice (PDF)
• Auction Results (PDF)

Public Proceeds Report

• Public Proceeds Report December 2022 (PDF)

Green Fund

Annual Green Fund Report

• 2021-22 Annual Green Fund Report (PDF)
• 2021-22 Audited Financial Statements (PDF)
• 2020-21 Annual Green Fund Report (PDF)
• 2020-21 Audited Financial Statements (PDF)