Ontario Closes the Book on Cap and Trade Carbon Tax Era
Final chapter in the elimination of the ineffective cap and trade program
Ontario's government is working for the people in taking the final step to end the cap and trade carbon tax once and for all in a way that puts people first and respects Ontario taxpayers.
The government has finalized the compensation for the eligible participants of the former program, which amounts to a total of $5,090,000. This is consistent with the government's initial estimate of the final costs and commitment to wind down the program in a responsible way that minimizes impacts to hardworking taxpayers.
"This closes the book on the cap and trade carbon tax era in Ontario. But in one week, the federal government will impose a brand-new job-killing carbon tax, punishing the hardworking people of Ontario," said Premier Doug Ford. "Our government remains part of a growing coalition of provinces across Canada that oppose this cash-grab, which raises the cost of essentials like home heating and gasoline."
"While some cited that the wind down of cap and trade would cost taxpayers billions of dollars, we are delivering on our commitment to an orderly and transparent wind down of the cap and trade program that respects taxpayers," said Rod Phillips, Minister of the Environment, Conservation and Parks. "This will be the final chapter in our promise to Ontario families to eliminate the ineffective cap and trade program, putting up to $260 per household back in the pockets of the people of Ontario."
Notices of the final compensation were sent to participants who applied under the Cap and Trade Cancellation Act, 2018.
"Ontario remains committed to reducing greenhouse gas emissions, fighting climate change and protecting our environment without a carbon tax," said Phillips. "Solutions such as our proposed emissions performance standards, a key part of our Made-in-Ontario Environment Plan, will help us achieve Ontario's share of our emission reduction targets, while recognizing the unique circumstances of our economy. After all, you can fight climate change without a carbon tax."
- On October 31, Ontario passed the Cap and Trade Cancellation Act, 2018 that officially removed Ontario’s cap and trade program law from the books.
- The total compensation amount is $5,090,000 for a total of 27 participants.
- The federal carbon tax will cost a typical household $258/year in 2019 and will rise to $648 by 2022.
- The federal carbon tax on fuels takes effect in April. It will increase the price of gasoline in Ontario by 4.4 cents per litre. This will rise to 6.6 cents in 2020, 8.8 cents in 2021, and 11.1 cents per litre in April 2022.
- The federal carbon tax will increase the price of natural gas in Ontario by 3.9 cents per cubic metre. This increase will rise to 5.9 cents in 2020, 7.8 cents in 2021, and 9.8 cents per cubic metre in April 2022.
- As outlined in Ontario’s environment plan, Ontario is committed to meeting its share of Canada’s 2030 target. From 2005 to 2016, Ontario reduced its emissions by about 22 per cent.