Please do not repeal the cap…

Please do not repeal the cap and trade program.

The science is telling us that we must mitigate climate change—we can no longer afford to emit greenhouse gas emissions. Canadians are some of the highest per capita greenhouse gas emitters and energy users globally. We must do our part and transition to a low-carbon economy. There are two main components to substantially mitigate climate change: 1) the government needs to price carbon to send a signal to the market to make a shift towards lower carbon options 2) the government must support low-carbon options for individuals and organizations to switch to, that is, the government needs to also improve the price elasticity of demand, for example, by helping to design infrastructure and markets to easily support low carbon options. The cap and trade system in Ontario did both of these things: the revenue from the carbon market was put towards low-carbon options in Ontario communities. This revenue can also make sure that individuals and organizations that are less price responsive, such as lower income groups, or people with less access to capital, can manage rising costs—a concern I know that the Ford government campaigned on. Both of these policy mechanisms—putting a price on carbon and improving the price elasticity of demand, also leads to economic development. The low-carbon economy creates innovation as well as local jobs and healthier communities.

One of the consequences of removing the cap and trade system is that the federal government has stated they will put a price on carbon in Canada. I think it is a poor decision to challenge this. I also think it is better for the province to price carbon because then the province can make sure that the revenue is put towards improving the carbon price responsiveness of Ontario communities.

If you replace the cap and trade program with another carbon pricing mechanism, because WE NEED a carbon pricing mechanism, it is still important to design it with other policies so that communities can respond to prices and manage rising costs.