Canada’s Ontario government scraps cap-and-trade

July 3, 2018, by Danya Hajjaji

TORONTO, July 3 (Reuters) – The newly elected Ontario government announced on Tuesday it would end the province’s cap-and-trade program, a policy designed to reduce greenhouse gas emissions, fulfilling one of Premier Doug Ford’s election promises.

The government said it would immediately start an orderly wind-down of all programs funded out of cap-and-trade carbon tax revenues.

Ford’s Progressive Conservative government says it aims to reduce gasoline prices by 10 cents per litre and lower energy bills by “getting Ontario out of the carbon tax business”.

Citing the Auditor General, the government stated the cap-and-trade program could cost Ontario consumers and businesses C$8 billion ($6.1 billion), with a minimal impact on the province’s carbon emissions.

During his campaign, Ford said he wanted to scrap Ontario’s cap-and-trade system, a move that puts him at odds with the Liberal party federal government. Analysts have said they expect ditching cap-and-trade will ease the burden on businesses in the short-term.

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