“We are getting Ontario out of the carbon tax business.”
One of Premier Doug Ford’s first moves was to scrap the cap and trade plan in Ontario and challenge the federal government. The cap and trade program rewards businesses and corporations for reducing their greenhouse gas emissions to below the provincial government’s set threshold.
Now, the Ford government promises to eliminate the carbon tax as early as next month.
Environment and Climate Change Canada also scaled back its carbon tax plan, and Ford has used it as a political tool to divide Ontario from the federal government.
Starting in 2019, however, the federal government will tax Ontario companies $20 for every tonne of greenhouse gas emitted and up to $50 per tonne in 2022.
According to Matthew Hoffman, U of T political science professor, “The federal government will collect the carbon tax for the province and then funnel the tax back into the province” to aid companies and individuals with higher costs of living. However, the main issue with the federal government’s design is how exactly that will be achieved.
The carbon tax is meant to be revenue neutral, contrary to Ford’s claim that the tax is a business.
Climate change should be of greater concern to Ontarians, and scaling back the cap and trade program and rewarding corporations that pollute heavily should not be endorsed.
The Liberals had introduced the cap and trade system to Ontario, setting a long-term goal to reduce emissions by 80 per cent below 1990 levels by 2050, as well as several interim objectives.
With Ontario under cap and trade, over three-quarters of Canadians would live in a province with some form of carbon pricing. However, Ford is erasing this progress.
Incidents like the Ford government’s scrapping of cap and trade are microcosms of a growing issue where climate change has become one of the most polarizing issues in Canadian politics.
Climate change is a unique issue in Canadian, American, and Australian politics, says Hoffmann, because in most places in the rest of world, it is not a partisan issue.
Unlike the rest of the world, where the political debate is about what should be done to stop climate change, the debate in Canadian politics is whether anything should be done at all, he says.
Despite this divide, the Progressive Conservatives have promised to unveil a climate change plan in the upcoming months.
Hoffmann believes that the Ford government’s promise to come up with an alternative climate change plan shows that Ontarians are concerned about climate change. In fact, voters have already been impacted by climate change. According to Ontario’s Climate Change Strategy, the 2013 ice storm in Southern Ontario inflicted approximately $1 billion in damages.
According to a 2011 report by the National Round Table on the Environment and the Economy, climate change could cost Canadians up to $91 billion by 2050.
“Ontario voters also expect that the government should have a climate plan,” says Hoffman. “You don’t see massive protests in Ontario that are against the environment.”
This can already be seen in the Trudeau government’s recent action to ‘soften’ the carbon tax in order to keep businesses competitive in Canada. What will become of Ontario and Canada’s greenhouse emission initiatives may be determined by next year’s elections.