Ontario Introduces Legislation to End Cap and Trade Carbon Tax Era in Ontario
Eliminating carbon taxes will save the average family $260 per year and help reduce gas prices by 10 cents per litre
The average Ontario family will receive $260 in annual savings thanks to the elimination of the cap-and-trade carbon tax.
Today Minister of the Environment, Conservation and Parks Rod Phillips announced details of legislation that would, if passed, formally end the cap-and-trade carbon tax era in Ontario.
The orderly wind down of the cap-and-trade carbon tax is a key step towards fulfilling the government's commitment to reducing gas prices by 10 cents per litre. In addition to saving families money, the elimination of the cap-and-trade carbon tax will remove a cost burden from Ontario businesses, allowing them to grow, create jobs and compete around the world.
The government's announced legislation will include a plan to compensate eligible participants of the program, including the development of new regulations. Participants eligible for compensation will be required to meet the following criteria:
- Participants who were required to participate in the cap and trade program
- Participants whose accumulated costs are currently above and beyond their assessed emissions
- Participants who did not pass program costs down to consumers.
The proposed legislation will also include measures to help replace the cap-and-trade carbon tax with a better plan for achieving real environmental goals.
- The Province revoked the cap-and-trade carbon tax regulation and prohibited all trading of emission allowances effective July 3, 2018.
- All programs currently funded through the cap-and-trade carbon tax have been cancelled, including the immediate wind down of the Green Ontario Fund.
- The average Ontario household will save about $260 a year in energy and fuel costs, and indirect costs from increased prices on goods and services.
“Ontario’s carbon tax era is over. Cancelling the cap-and-trade carbon tax is the right thing to do, a good thing to do and one more example of a promise made and a promise kept.”