Ontario Introduces New Climate Change Legislation

Proposed Law to Ensure Transparency, Accountability for Use of Cap and Trade Auction Proceeds

News from the Government of Ontario

Posted February 25th, 2016 on Niagara At Large

(A Brief Note on this News form NAL publisher Doug Draper – Anyone who has been following my reporting and commentary going back to my lengthy time as an environment reporter for commentary at a daily newspaper in Niagara two and three decades ago, knows how hard I have advocated for an end to the pollution that causes climate change and other serious damage to the life-sustaining resources on our planet.

But a cap-and-trade system for reducing emissions of climate change pollutants? Why not something far easier and less costly to administer, not to mention far easier to understand, like a carbon tax?

I don’t know many people, however intelligent, who understand what a cap-and-trade system is or how it works. And I think it should always be a red-flag moment when a government or anyone else tries to sell us something that is hard to understand because it could very well be a way of trying to pull a big fat, fast one on us.

I believe that at least part of the reason Ontario’s Wynne government is going for a cap-and-trade program rather than a carbon tax, is because Wynne and company can call it a “program” rather than a “tax” – and in fairness to Wynne, no mainstream party in Ontario, including the NDP, has the courage to support anytning that has the ‘t-word’ in its title.

But let’s be clear on one thing – at the end of the day, a cap-and-trade program is a form of taxation and at the end of the day, everyone who turns on a furnace, a car or anything else that runs on carbon fuels is going to being paying more for the privilege of doing so.

What is bothersome with the “program” Premier Kathleen Wynne and her Liberals are about to launch in Ontario is that they are reportedly going to make everyday citizens pay this tax first and give at least a one-year reprieve to more than 100 of the largest industries in the province – many of which are large emitters of climate disrupting gases. And that is not fair at all, given the fact that many of these industrial entities pay lower corporate taxes than they would across the border in the United States and some may be taking their profits off-shore and not paying taxes at all.

More on the pros and cons of cap-and-trade and related issues in later posts on this site. For now, here is the Ontario government’s news announcement on its plans to introduce this program through the budget it is tabling this February 25th.)

Queen’s Park, Toronto, Ontario – To build on the work already underway to fight the effects of climate change, Ontario is laying a foundation to join the biggest carbon market in North America by introducing new legislation today that, if passed, would ensure that proceeds from the province’s cap and trade system are transparently reinvested into green projects and actions that will reduce greenhouse gas pollution.

Under the proposed Climate Change Mitigation and Low Carbon Economy Act, all proceeds from Ontario’s cap and trade program would be deposited into a new Greenhouse Gas Reduction Account. In turn, this account would only fund projects and initiatives aimed at reducing emissions.

To ensure accountability to the public, the act would also:

• Require an annual report on funds flowing in and out of the Greenhouse Gas Reduction Account, as well as a description of supported initiatives.
• Enshrine the province’s greenhouse gas reduction targets in law and require government to develop a climate change action plan detailing how the province plans to meet those targets at least every five years.
• Allow for transitional allowances to large industrial emitters which would be phased out over a period of time.

The proposed Climate Change Mitigation and Low Carbon Economy Act builds on Ontario’s recent actions to fight climate change, including ending coal-fired electricity generation, working with industry and other partners on the design of a cap and trade program, releasing a Climate Change Strategy and investing in projects that fight climate change through the $325 million Green Investment Fund.

Fighting climate change while supporting economic growth, efficiency and productivity is part of the government’s plan to build Ontario up and deliver on its number-one priority to grow the economy and create jobs.

The four-part plan includes investing in people’s talents and skills, making the largest investment in public infrastructure in Ontario’s history, creating a dynamic, supportive environment where business thrives, and building a secure retirement savings plan

.QUOTES

“Fighting climate change is one of the most important issues of our time. This proposed legislation ensures that all money raised by putting a price on carbon will be reinvested in a transparent way to the benefit all Ontarians. It will hold government accountable in the fight against climate change, support a prosperous low-carbon economy and build a better future for the planet, for the province and for generations to come.” – Glen Murray, Minister of the Environment and Climate Change

QUICK FACTS

• In May 2015, Ontario became the first province in Canada to set a mid-term greenhouse gas pollution reduction target of 37 per cent below 1990 levels by 2030.

• Ontario’s $325 million Green Investment Fund commits money to projects that fight climate change while growing the economy and creating jobs. These investments will help transform the way we live, move, work and adapt to our environment by building strong and sustainable communities

LEARN MORE

Ontario’s Climate Change StrategyGreen Investment Fund

Learn How Cap and Trade Works

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