Clean energy credit program

The Ontario government is committed ensuring that Ontario electricity consumers have access to CECs generated in Ontario. OPG is committed to help Ontario customers achieve their climate targets and supports the Ontario government developing a CEC market and registry to help further decarbonize the province. 

The Ontario government CEC program is structured to:

• Allow CECs generated within Ontario to be retired against load located in Ontario,
• Ensure participants in Ontario’s CEC market use the Ontario CEC Registry to transfer and retire CECs, and
• Enable transparency by requiring annual reporting of CEC transfers and retirements.

Refer to Ontario Launches Clean Energy Credit Registry to Boost Competitiveness and Attract Jobs | Ontario Newsroom for more information about the government’s CEC program.

OPG is committed to supporting the government in implementing it’s Ontario CEC Program by making available to Ontario consumers the clean energy credits produced from OPG’s clean generation assets, including hydroelectric and nuclear.

Many companies have voluntary corporate Environmental, Social and Governance ("ESG") goals to reduce their carbon footprint. Clean Energy Credits help companies achieve their Scope 2 emissions goals by allowing them to claim that the electricity they consume from the grid comes from clean or low-emitting generation sources and ensuring that no other consumer can make the same claim.

The current best practices for tracking and reporting emissions are outlined by the Greenhouse Gas Protocol (Greenhouse Gas Protocol | (ghgprotocol.org)). This reporting framework outlines three types of GHG emissions: 

• Scope 1 are direct emissions from owned or controlled sources. For example, Scope 1 comprise emissions from direct, on-site combustion of natural gas used in the production of electricity or heat for a company’s buildings or manufacturing processes.
• Scope 2 are indirect emissions from grid purchased electricity (or other energy) consumed by a company. CECs can help facilitate the tracking and reporting of Scope 2 emissions.
• Scope 3 includes all other indirect emissions that result from a company’s operations.

Scope 2 and Scope 3 are the indirect emissions that coincide with the direct emissions that are reported in Scope 1.

OPG reports Scope 1 and Scope 2 emissions and CEC volumes transferred in its annual sustainability reporting and emissions and broader environmental reporting in its Environment, Social and Governance (ESG) report.

OPG will continue to report on CEC transfers and meet any additional reporting requirements necessitated by the launch of the Ontario CEC registry. 

Additional information on OPG’s CECs transferred and retired up to and including 2022 and prior to the launch of the Ontario registry can be found in this Pre-Registry Launch CEC Transfers Report (PDF).

CECs allow customers in Ontario to link the power they have consumed to power generated from clean resources, which reduces the customer’s Scope 2 emissions.

Electricity consumers can purchase CECs from OPG. Transfer of the credits from OPG to the consumer happens through a central registry, which certifies that this electricity comes from a clean or low-emitting generating source. The registry also serves to track the credits and ensure that ownership claims are not double counted. OPG will use the Ontario CEC Registry to facilitate CEC transfers.

Eligible generators and loads participating in the sale and purchase of CECs are to register with Midwest Renewable Energy Tracking System (M-RETS) for the Ontario Program. The M-RETS registry platform will allow for the creation, transfer and retirement of CECs in Ontario. The Independent Electricity System Operator (IESO) is responsible for administering the registry including setting the Ontario program rules.

More information on the M-RETS registry platform and the Ontario Program can be found on the M-RETS | (mrets.org) and Ontario Program (ieso.ca) websites.

The M-RETS Operating Procedure and Ontario Program Rules are posted on the M-RETS | Registry Documents (mrets.org) website.

Training on how to use the M-RETS registry is also available: M-RETS Ontario CEC Registry Program training video (YouTube).

OPG offers voluntary, unbundled, non-certified CECs from its portfolio of Ontario sited clean or low-emitting generators, including hydroelectric and nuclear resources.  OPG also offers Ecologo-certified (UL 2854) renewable energy credits from its small, low-impact hydroelectric facilities.

OPG currently offers Ontario CECs from the following products:

• Ontario Ecologo certified small, low-impact hydro RECs
• Ontario sited large-hydro RECs
• Ontario sited low carbon-emitting nuclear resources

Ontario’s CECs provide companies a line of sight to the generation source of the electricity consumed – creating a value for environmental attributes. Although the sale of CECs does not change the amount of Scope 1 emissions produced from electricity generation, the sale of CECs to companies seeking to meet their Scope 2 emissions goals creates a revenue stream that can lower costs for ratepayers or be invested in new clean energy in support of Ontario’s push towards net-zero by 2050.

A CEC market provides an important price signal that demonstrates consumer preference for clean sources of electricity. This can incentivize the development of new clean generation in Ontario – which in turn can help reduce direct emissions in Ontario further – while attracting new businesses who need reliable, clean supply to meet their ESG goals.

The Ontario government will establish a Future Clean Energy Fund (FCEF) for the proceeds from the sale of CECs which will help keep costs down for electricity ratepayers and fund the construction of clean electricity projects in Ontario.  This fund will help build Ontario’s clean energy advantage as the province competes for and attracts new investments in electric vehicle and battery manufacturing, clean steel, and other sectors, while continuing to build its clean economy. Find more information on this fund in this backgrounder: Ontario Launches Clean Energy Credit Registry and Establishes Future Clean Electricity Fund | Ontario Newsroom