Published: Sat, July 07, 2018
Science | By

Bill Kelly: The cost of scrapping cap and trade

Bill Kelly: The cost of scrapping cap and trade

Ford's cancellation of Wynne's Climate Action Plan that was to spend $8.3 billion over five years from cap-and-trade revenues, means the cancellation of everything from government subsidies of up to $14,000 for people who buy electric cars, to some public transit projects.

Premier Doug Ford made it official Tuesday with his announcement that his government is scrapping Ontario's cap and trade program.

"People need the details on exactly when this is going to be wound down and if there are any programs that are going to persist, we also need to know what those are, because otherwise the manufacturers are going maybe on a rollercoaster ride", he said.

Cap and trade, a carbon tax by another name, raises prices on goods and services rather than the taxes on them.

Ford's office did not immediately respond to a request for comment Tuesday but the premier said in the statement that he believes scrapping cap and trade will put money back in Ontarians' pockets. "Cancelling the cap-and-trade carbon tax will result in lower prices at the gas pump, on your home heating bills and on virtually every other product that you buy".

Scraping cap-and-trade a ticklish business Without a doubt, Ford ran his campaign on getting rid of the carbon tax, and it has been his first order of business.

Ford said his government will honour contracts that have already been signed through GreenON, such as energy efficient insulation and window retrofits.

It remains unclear how much exiting the cap-and-trade program will cost Ontario, which is part of a larger program with Quebec and California, and what will happen with the almost $3 billion in credits that companies have already purchased.

Doug Ford said that when considering the future of the initiatives and programs begun earlier, the government will make the decision in each case, attracting money from the tax budget of the province.

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