Yesterday, Ontario’s Minister of the Environment, Conservation and Parks Rod Phillips announced details of legislation that will, if passed, formally end the cap-and-trade carbon tax era in Ontario.
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 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 another plan for achieving environmental goals.
The Government calculates that these measures will save average Ontario household about $260 a year in energy and fuel costs, and indirect costs from increased prices on goods and services.
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