TORONTO — Ontario’s new Progressive Conservative authorities expects to spend as much as $5 million to compensate firms that purchased into the province’s cap-and-trade system, the provincial atmosphere minister stated Wednesday earlier than transferring to repeal the carbon pricing program.

Rod Phillips launched a invoice that, if handed, will lay out the authorized framework to wind down cap and commerce, in addition to the factors for firms searching for to be reimbursed for prices incurred by this system.

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Whereas this system’s 272 contributors purchased near $three billion in allowances, Phillips stated solely people who bought greater than they used whereas this system was nonetheless energetic, and weren’t capable of get well these prices from shoppers, will probably be eligible for compensation.

Watch: Ontario, feds set for carbon tax scrap

The proposed laws would additionally shield the province from any potential litigation over the choice, the federal government stated.

Critics have been fast to name the transfer disruptive for enterprise, saying it’ll possible be challenged in court docket regardless of the immunity constructed into the invoice. However Phillips stated he believes it will likely be nicely acquired.

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“The suggestions I have been getting from the enterprise neighborhood is sort of optimistic about this authorities and so I haven’t got worries about that. This can be a very reasonable framework round compensation,” he stated.

The cap-and-trade system goals to decrease greenhouse gasoline emissions by placing caps on the quantity of air pollution firms in sure industries can emit. In the event that they exceed these limits, they have to purchase allowances at quarterly auctions or from different firms that are available in beneath their limits.

Scrapping the system was one in all Premier Doug Ford’s key guarantees throughout the province’s spring election marketing campaign, and one of many priorities he vowed to deal with on this month’s uncommon summer season sitting of the legislature.

Extra from HuffPost Canada:

The Tory authorities has already taken steps to unravel this system, together with revoking the regulation that lays out its operation. That has led to the cancellation of various inexperienced initiatives that have been funded by cap-and-trade revenues, resembling rebates for energy-efficient renovations and a fund for varsity repairs.

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Opposition events had expressed issues that the federal government may very well be on the hook for billions of {dollars} to compensate allow holders, and that the Tories have but to elucidate how they’ll make up for the misplaced income.

Others, together with the federal atmosphere minister, had additionally raised the alarm about what they perceived as Ontario’s lack of a plan to sort out local weather change.

The New Democrats and the Inexperienced celebration stated the invoice launched Wednesday didn’t assuage their fears, though it requires the federal government to set targets for decreasing greenhouse gasoline emissions and to publish a local weather change plan. Phillips stated the specifics of each can be decided at a later date.

Inexperienced chief bemoans ‘a battle on the trendy world’

“Ontario wants an actual local weather plan that places a value on air pollution, places cash in folks’s pockets and helps jobs within the clear financial system. As a substitute we’re getting a battle on the trendy world and no indication from the PC authorities that local weather change is on their radar,” Inexperienced Chief Mike Schreiner stated in an announcement.

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NDP atmosphere critic Peter Tabuns stated taxpayers are more likely to find yourself paying extra due to potential authorized battles over the invoice, in addition to the worth of a carbon tax the federal authorities has vowed to impose on provinces that would not have their very own carbon pricing methods by subsequent yr.

“I suppose we’ll see whether or not or not the $5 million is life like however I believe the larger query is, for lots of Ontarians, they’ll see larger carbon costs within the coming years as a result of the federal authorities’s program goes to chop in,” he stated.

The provincial authorities stated dismantling cap and commerce would save every family a median of $260 subsequent yr, however acknowledged that will largely be cancelled out by the federal carbon tax, which is ready to extend over time.

Ford has stated he would be a part of Saskatchewan’s court docket problem of the federal authorities’s means to impose a carbon value upon the provinces — a authorized battle for which his celebration has budgeted $30 million over 4 years.

Ontario’s fiscal watchdog stated Tuesday it’ll look into how a lot the cancellation of cap and commerce will find yourself costing the province.



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