Ontario’s cap-and-trade system to be scrapped, says Ford’s spokesman

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It now appears that incoming Premier Doug Ford will move to scrap the “disastrous” cap-and-trade system and fight a federal carbon tax. This was one of his main campaign promises.

Ford, whose Progressive Conservatives won majority of seats in the Ontario legislature, is currently meeting with his transition team to select his cabinet and prepare for his official swearing-in on June 29.

Ford has indicated he is also committed to fighting federal rules set to kick in next year that require provinces to have carbon pricing in place.

The cap-and-trade system aims to lower greenhouse gas emissions by putting caps on the amount of pollution companies in certain industries can emit. If they exceed those limits they must buy allowances at quarterly auctions or from other companies that come in under their limits.

The cap declines about four per cent each year to 2020, and as it decreases, the government hopes companies have more incentive to cut their emissions.

Ontario has made close to $3 billion in a series of auctions since the system was introduced last year.

Ford has consistently opposed carbon pricing and has come under fire for failing to explain how he would make up for the lost revenue.

Carbon currently costs roughly $20 per tonne, with the price expected to rise to $30 to $100 per tonne by 2030, but even that won’t be enough to bring down emissions, the organization says, predicting that people will simply pay more and continue to produce as much gas.

This could however be challenged by the feds and incoming Premier Ford could have to deal with a few hurdles before he gets to fulfill his promise. – CINEWS

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