Prioritize development of clean utility-scale and local electricity supply and pursue all cost-effective demand-side measures.

The Ontario government holds distinct policy levers to modernize the electricity grid, including regulatory authority, targeted funding, strategic planning mandates, and market design influence. By aligning these tools with carbon reduction goals, the province can ensure that electricity generation, transmission, distribution, and demand-side innovation is reliable, affordable, and resilient.

Specific Actions

• In future bulk system electricity procurements, direct the IESO to assign scores based on the lowest cost for rate payers, and reward non-emitting resources based on transparent criteria and benefits.
• Remove barriers limiting renewable energy development, including:
  • Extend Community Net Metering (O. Reg 679/21) province-wide and allow for community ownership models that enable local ownership, community benefits, and greater Indigenous participation.
  • Increase the microgeneration threshold from 10 kW to at least 20 kW. 
  • Amend O. Reg 350/12 to reduce the 15-metre setback requirement for ground-mounted solar installations. 
  • End the offshore wind moratorium.
• Fully utilize the $10.9 billion allocation to electricity Demand Side Management, including by moving quickly to include programs led by local distribution companies and programs for new construction.

Modernize and standardize building codes across the province in collaboration with municipalities.

No energy or carbon requirements have been materially updated in the Ontario Building Code (OBC) since 2017, risking operational affordability and the health and climate benefits of high-performance buildings. The OBC is not harmonized with the National Building Code in this area, creating unnecessary complexity for industry and barriers to interprovincial trade and labour mobility. Additionally, the Ontario government should coordinate with federal and municipal policies, allowing municipalities to streamline and harmonize development through municipal Green Development Standards.

Specific Actions

• Update the Ontario Building Code to include: 
  • Alignment with at least Tier 2 of the 2020 National Energy Code of Canada for Buildings and Tier 4 of the National Model Building Code.
  • A schedule for aligning with the highest tier of the national code to provide regulatory certainty for industry.
• Develop an opt-in standard, based on the National Model Building Code and National Model Energy Code, for municipalities that want to exceed minimum OBC requirements while ensuring consistency in approach.
• Establish a 100% requirement for Electric Vehicle Service Equipment readiness (also known as a “rough-in” requirement) for new residential construction.

Accelerate electric vehicle adoption with strategic funding.

Recognizing the economic and labour opportunity, Ontario has spent billions of dollars in incentives to attract EV manufacturing plants. To maximize local returns on that investment, the government should commit to supporting local EV adoption and ensure that more of the EVs produced in Ontario are purchased locally.

Specific Actions

• Renew funding for Ontario’s Electric Vehicle Charging Infrastructure Program for a multi-year period and expand it to include a stream for multi-family buildings.
• Provide purchase incentives for new and used EVs for low- and modest-income households. 
• Offer tax credits or rebates for the purchase of medium- and heavy-duty vehicle charging infrastructure and vehicles.
• Integrate smart charging incentives in Ontario’s new Electricity Energy Efficiency Framework.

Establish a climate plan and targets and a process to report progress against them. 

Ontario’s last climate plan was established in 2018 and was never formally adopted by the Province of Ontario. It has now been officially rescinded by the provincial government, along with Ontario’s climate targets and reporting process. The Province should develop a new climate plan and targets and establish a process to report progress against them on an annual basis.  Ontario’s emissions have been trending upward for the past four years and there is little reason to expect different results without a plan or target. Additionally, having a plan and target will help position Ontario as a more attractive destination for investment, especially for the rapidly growing clean tech industry.