Battle over federal carbon tax intensifies

As Ontario’s challenge hits courtroom, Trudeau may face new adversary out west

OTTAWA — The political fight over climate change and what, if anything, to do about it intensified on three fronts Monday: the courtroom, the campaign trail and the gas pump.

In Toronto, the Ontario Court of Appeal heard the opening argument of the Progressive Conservative government’s challenge of the federal carbon price law. Ontario government lawyers argued the carbon tax, which came into effect two weeks ago and has been routinely disparaged by conservative politicians as an economy killer, should be struck down as an unconstitutional expansion of federal powers.

The federal Liberal government has said the policy both falls within its jurisdiction and is a responsible way to fight climate change; it will make its arguments later this week.

Meanwhile, the Ford government is defending its decision to force gas stations to paste government-issued stickers, which warn of the costs of the federal carbon tax, to pumps across the province or face steep fines.

“The carbon tax isn’t the best way down the road,” said Transportation Minister Jeff Yurek on Monday. But he would not say how his government intends to enforce its sticker law.

The federal Liberals say Ontario Premier Doug Ford’s warnings mislead the public by neglecting an important detail: all of the revenues from the levy will be returned to taxpayers, many of whom will receive more in rebates than they pay.

All this as Albertans witnessed the final day of a provincial election campaign in which carbon pricing — and what it means for the oil industry there — was a central focus.

If the governing NDP loses to the United Conservative Party in Tuesday’s vote, Alberta will cancel its provincial carbon price and join the fight against the federal tax — a confrontation, as Monday reminded us, that shows no signs of cooling down.