Ford to Repeal Ontario Cap-and-Trade Program and Challenge Federal Backstop


Premier-designate Doug Ford today announced that his Cabinet's first act will be to repeal Ontario's cap-and-trade program and challenge the federal government's authority to impose a carbon price in Ontario.


Mr. Ford also announced that Ontario would be providing notice of its withdrawal from the Western Climate Initiative and the joint agreement linking Ontario, Quebec, and California's cap-and-trade markets.


The Premier-designate's news release indicates that Mr. Ford will direct officials to immediately take steps to withdraw Ontario from future auctions for cap-and-trade credits. The government will provide rules for wind-down of the cap-and-trade program. Finally, Mr. Ford announced that he will issue directions to the incoming attorney general to challenge the Government of Canada's authority to implement federal backstop in Ontario.


Mr. Ford. said "I made a promise to the people that we would take immediate action to scrap the cap-and-trade carbon tax and bring their gas prices down. Today, I want to confirm that as a first step to lowering taxes in Ontario, the carbon tax's days are numbered."


We expect prompt market stabilizing measures from California and Quebec.


Please contact Lisa DeMarco at lisa@demarcoallan.com at DeMarco Allan LLP, Canada's only boutique climate and clean energy law firm, should you wish to discuss the foregoing.


Photo Credit: Benson Kua, Flickr (used without modification)


Search By Tags
Recent Posts
Latest Tweets

© 2020 DeMarco Allan LLP

Terms of Use and Privacy Statement