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The liberal government of Ontario has argued that the emissions of greenhouse gases are emitted into the atmosphere, without distinction between one province or the other, and that it doesn’t matter what territory they originate.
The first year of carbon pricing in Ontario generated close to $ 2 billion, but the uncertainty about the future of the program while the province is facing elections in 2018, which could mean the replacement of the system of cap-and-trade with a carbon tax.
The system, launched in 2017, aims to reduce emissions of greenhouse gases by establishing ceilings for companies in certain sectors. If these companies exceed these limits for polluting emissions, they must buy emission credits at auctions or from other companies that emit less than the ceiling.
The ceiling is lowered to about 4 % each year until 2020, and in the course of the decline, the government’s hope that the motivation will be even greater for businesses to reduce their emissions.
Ontario generated $ 1.9 billion this year through four auctions of cap-and-trade, three of which have exhausted all credits. Some fear that, once that Ontario has joined the carbon market, Quebec and California 1 January, the revenues of the auctions, are lower — at least in the short term, as it will be less expensive for ontario companies to buy credits in Quebec or in California. This would also ensure that the greenhouse gas emissions would not be effectively reduced in Ontario, according to the environmental Commissioner of Ontario and the auditor general.
This is the amount generated in Ontario through four auctions of cap-and-trade carbon.
Nevertheless, the liberal government of Ontario has argued that the emissions of greenhouse gases are emitted into the atmosphere, without distinction between one province or the other, and that it doesn’t matter what territory they originate.
The question of the use of monies generated by the program has been at the heart of the political debate in the province. The government invests these revenues in environmental projects such as the improvement of the economy of energy in hospitals, smart thermostats for the home owners and bike lanes, which will mean,-he hoped, to further reduce the emissions of greenhouse gases.
The New democratic Party (NDP) estimates that there is a lack of transparency in the management of the green fund, and the progressive conservative Party was seen as a way for the government to seek even more money in the pockets of the taxpayers.
The progressive conservative Party has promised, if it wins the elections in June, to withdraw the province’s cap-and-trade, instead, implement a carbon tax, with one key difference on how to spend the income. The conservatives are proposing to use the revenue to finance a reduction of the tax on the income in order to offset the impacts to the taxpayers.
The liberals argue that the system of cap-and-trade offers guarantees for emission reductions at the lowest costs. “[The system of the progressive conservative Party] is more expensive on a daily basis, and there is no guarantee that it will reduce effectively the emissions of greenhouse gases “, has recently argued, in the interview, the first minister Kathleen Wynne.
The carbon price in the auctions, in Ontario in 2017 was about us $ 18 a tonne. By 2022, the government expects it to climb to more than $ 20, although some forecasters expect to a higher level.
According to the terms of the carbon tax by the federal government favored by the progressive conservative Party- Ottawa has indicated that the provinces were to act in choosing between a system of cap-and-trade and a carbon tax, the price would be $ 50 a tonne by 2022.
“It is a question of federal law. I believe that we should make our contribution to combating climate change, and I do not believe it is incompatible to be a progressive conservative and a concern for the environment “, said in the interview, the leader of the party, Patrick Brown.