The Ontario government’s frivolous $30 million lawsuit against the federal government over the carbon tax is a self-inflicted wound that the provincial 2019 budget, announced April 11, fails to address. Doug Ford’s government claims that the implementation of a carbon tax on Ontario would be ineffective, result in job losses, and be bad for business. However, he brought this tax on the province when he chose to scrap the cap and trade program, which aimed to hold industry directly accountable instead of putting the onus on consumers.
In lieu of clarification on the carbon tax or the binned cap and trade model, the budget vaguely outlines a performance-based emissions reduction program that it expects will circumvent implementation of the impending carbon tax. The program entails developing and setting emissions performance standards sector to sector and assessing reductions according to the previous output of facilities. This will be buttressed by the creation of an emissions reduction fund, meant to incentivize industries to adopt “cost-effective projects in various sectors, such as transportation,” with no mention of investments in renewable energy.
Ironically, the budget states that performance standards will be “tough but fair, cost-effective and flexible,” as if ‘tough’ and ‘flexible’ are not antonyms.
Initiatives like these may not result in substantial emissions reductions because preceding enforcement, industry can ramp up their emissions in order to be held to a lower bar — what they would have normally been producing — when the time comes to ostensibly reduce output.
Green Party of Ontario leader Mike Schreiner told The Varsity that the proposed plan mirrors the failing emissions reduction mechanism currently operating in Australia, which has a much larger budget of about $1.9 billion, compared to the $400 million “emissions reduction fund” proposed in the provincial budget.
Ford is fear mongering about job losses, when, in reality, Ontario has had a good year of job growth overall, and despite the carbon tax in British Columbia working for years. Whether Ford likes it or not, the federal government is within its rights to impose a federal tax according to the distribution of powers outlined in section 91 of the Constitution Act, 1867. The taxpayer-funded money used to fight the carbon tax will be wasted in a frivolous lawsuit.
Lastly, it is worth noting the province has based its emissions targets on the federal government’s, which was grandfathered in from the Stephen Harper era and does not comply with the Paris Agreement. Their target of reducing emissions levels by 30 per cent compared to 2005 levels by 2030 is not nearly aggressive enough to curtail catastrophic repercussions, as forewarned by the Intergovernmental Panel on Climate Change’s Fifth Assessment Report.
As Schreiner said in his address to the press during the budget lockup, it is clear that “this budget cares about the price of everything and the value of nothing.”