The cap and trade program…

The cap and trade program has been effective in implementing greenhouse gas (GHG) emission reductions in Ontario since its introduction. These measures include: building cycling infrastructure, funding transit, getting renewable energy built, financing home and commercial energy efficiency upgrades. Transit upgrades help municipalities attract talent and provide options for its low-income individuals who cannot afford vehicles. These individuals may want such projects as it helps to get them to work on time without spending additional money. Energy efficiency upgrades allow homeowners and small business owners to save money and reinvest it into their enterprises. Canceling the cap and trade program risks hurting stakeholders that are benefiting from the legislation.

Removing cap and trade will be costly. It will lead to numerous litigations and lost value for companies holding allowances. For a regime that is just starting to prove its worth, this would be truly unfortunate. Its removal would be a double whammy for taxpayers: 1) economic costs of defending lawsuits and, 2) the lost spending of lower GHG activities leading to a better environment.

The cap and trade program helps to generate employment and grow business. I can cite examples of companies that have helped municipalities gain access to cap and trade funds. The program attracts capital, talent, and innovation. The province has developed an expertise in energy efficiency, renewable energy technology, and green business. In several cases, there have been partnerships with the financial sector, where access to capital can be unlocked. Such expertise is akin to specialties that have been developed in agriculture and auto manufacturing. By scrapping cap and trade, we risk losing Ontario's burgeoning strength in green business. If we are open for business, we are risking having this business go elsewhere.

The UN is now saying that we are 12 years away for global warming to be kept to a maximum of 1.5 degrees Celsius. Anything going beyond that would lead to extreme drought and extreme heat. We have already seen the consequences of the latter across Ontario this summer. Let's do something about preventing this while we can. Cap and trade may have room for improvement, but it is an excellent starting point for increased competitiveness for this province, engine for prosperity, and to continue making it a magnet for talent.