Ontario Introduces Legislation to end Cap and Trade Carbon Tax Era

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.

“Ontario’s carbon tax era is over. Cancelling the cap-and-trade carbon tax is the right thing to do, a good thing to do and one more example of a promise made and a promise kept,” said Phllips.

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.

(Reporting by Asha Bajaj)