Ontario Introduces Legislation to End Cap and Trade Carbon Tax Era in Ontario
Eliminating carbon taxes will save the average family $260 per year and help reduce gas prices by 10 cents per litre
The average Ontario family will receive $260 in annual savings thanks to the elimination of the cap-and-trade carbon tax.
Today Minister of the Environment, Conservation and Parks Rod Phillips announced details of legislation that would, if passed, formally end the cap-and-trade carbon tax era in Ontario.
The orderly wind down of the cap-and-trade carbon tax is a key step towards fulfilling the government’s commitment to reducing gas prices by 10 cents per litre. In addition to saving families money, the elimination of the cap-and-trade carbon tax will remove a cost burden from Ontario businesses, allowing them to grow, create jobs and compete around the world.
The government’s announced legislation will include a plan to compensate eligible participants of the program, including the development of new regulations. Participants eligible for compensation will be required to meet the following criteria:
Participants who were required to participate in the cap and trade program
Participants whose accumulated costs are currently above and beyond their assessed emissions
Participants who did not pass program costs down to consumers.
The proposed legislation will also include measures to help replace the cap-and-trade carbon tax with a better plan for achieving real environmental goals.
The Province revoked the cap-and-trade carbon tax regulation and prohibited all trading of emission allowances effective July 3, 2018.
All programs currently funded through the cap-and-trade carbon tax have been cancelled, including the immediate wind down of the Green Ontario Fund.
The average Ontario household will save about $260 a year in energy and fuel costs, and indirect costs from increased prices on goods and services.