October 31, 2018 – The Ontario government has passed a bill that will eliminate the province’s cap and trade program, which was touted by the previous government as a way to reduce emissions.
The program set firm limits on pollution (caps) that companies could trade on by buying and selling permits priced according to supply and demand, allowing them to emit certain amounts.
Premier Doug Ford has long said that the plan is not effective in lowering greenhouse gas emissions and unfairly targets businesses.
The new legislation, called Bill 4: The Cap and Trade Cancellation Act, includes requirements for the government to establish targets to lower the amount of greenhouse gas emissions in the province. Rod Phillips, the minister of environment, conservation and parks will deliver a new climate change plan later in the fall.
The government has said that companies who purchased more than they used during the cap and trade program will be compensated, though the amounts haven’t been specified.
The Canadian Press reports that Ontario made nearly $3 billion in cap-and-trade auctions since the program was introduced by the Liberal government in 2017. Ontario’s fiscal watchdog estimates the cancellation will cost the province $3 billion in lost revenue over the next four years.
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