Cap-and-Trade Program

Cap-and-Trade Program is winding down

Nova Scotia is transitioning from the cap-and-trade program to an Output-Based Pricing System for large emitters for the 2023-2030 period.

During this transition period, the cap-and-trade program continues to apply to greenhouse gas emissions for the 2019-2022 period with 2023 being the final year of the program. There are 2 final auctions in 2023 with a reserve sale scheduled for August 2023. The final compliance deadline for all participants under the program is December 15, 2023.

Key dates

• 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

Cap-and-trade program rules

Legislation and regulations

The Environment Act, 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.

The  Quantification, Reporting, and Verification of Greenhouse Gas Emissions Regulations and Standards for Quantification, Reporting, and Verification of Greenhouse Gas Emissions (PDF) outline the rules for reporting greenhouse gas emissions.

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

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 (PDF)

2021: No transactions occurred

2022: 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.

Managing participant accounts

Participating companies can manage their accounts using the Compliance Instrument Tracking System Service (CITSS). Forms and documents required to manage accounts:

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)

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

Auction details

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

Further details about auctions are available in the resources:

• 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)

June 7, 2023

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

August 22, 2023

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

Public Proceeds Report

• Public Proceeds Report August 2023

Green Fund

• 2022-23 Annual Green Fund Report (PDF)
• 2022-23 Audited Financial Statements (PDF)