Ford moves to dismantle cap and trade, officially winds down green programs
Regulation outlining carbon pricing is revoked, as businesses wonder about compensation
Ontario’s new premier has taken a step in his plan to dismantle the province’s cap-and-trade system, a move some observers say leaves businesses involved in the program facing uncertainty.
In a statement Tuesday, Doug Ford said he has revoked the regulation that outlines the carbon-pricing system and his government will begin winding down all green programs funded through it this week.
Ford said the province will honour contracts and orders that have already been signed for projects funded by cap-andtrade, such as energy-efficient insulation and window retrofits.
Some rebates for energy-efficient renovations that were financed through cap-and-trade revenues — such as the GreenON rebate program — were already being phased out before Ford officially took office last week.
The premier said the government will decide on a caseby-case basis whether some initiatives funded by the program will be paid for using tax base revenue.
Those decisions will take into account his overall plan for the province and the results of an upcoming value-for-money audit of government spending, he said.
The Progressive Conservative leader, who was sworn in as premier Friday, had promised that cancelling cap-and-trade would be his first order of business.
In order to scrap the program, Ford must first amend or rescind the legislation that governs it, said Keith Brooks, program director for the advocacy group Environmental Defence. The law sets climate-change targets and earmarks cap-and-trade revenues for green initiatives, among other things, he said.
The government must also formally notify its partners in the Western Climate Initiative that it is withdrawing from cap-andtrade, Brooks said. The agreement signed by the province said it would endeavour to give a year’s notice before pulling out, he said.
“We know that the premier ... promised to get rid of cap-andtrade and we understand he’s moving quickly to fulfil that promise, but ... there’s some questions that haven’t been answered,” he said.
Ontario companies have bought close to $3 billion in permits under the system and need to know whether they will be compensated for those permits, Brooks said, noting some have suggested the province should offer a full refund.
More details are also needed on how the green initiatives funded by cap-and-trade will be closed so that both consumers and businesses involved in delivering those services can make decisions and plans, he said.
The NDP and Green Party have said Ford’s rush to pull out of cap-and-trade could mean taxpayers will pay billions in legal fees, penalties and other costs.
Ford’s office did not immediately respond to a request for comment on Tuesday.