Here's why Ontario needs to…

Here's why Ontario needs to price carbon.

It’s commonly accepted that those who produce pollution should pay to prevent damage to human health, property or the environment. Burning fossil fuels (oil, coal and gas) produces carbon dioxide, the main driver of climate change. Climate change in turn creates societal costs by increasing the intensity of extreme weather events, contributing to flooding and forest fires, raising sea levels, acidifying oceans, increasing biodiversity losses, increasing the spread of vector-borne diseases like dengue, and much more.

By increasing the cost of activities that produce carbon, carbon pricing incentivizes practices that reduce emissions, makes fossil fuels more expensive relative to low-carbon fuels, encourages energy efficiency and makes nonpolluting forms of energy more cost competitive.

There are two main ways to put a price on carbon: by levying a carbon tax and by using a cap-and-trade approach.

Virtually every economist in the world agrees with pricing carbon. Even four of the world's biggest oil companies who are part of the US Climate Leadership Council. By 2020 the US is expected to debate carbon pricing. Ontario will be left behind and will be subject to carbon tariffs by some countries such as France.

Ontario and the business/industrial sectors have already invested significant resources in cap and trade. Why waste time and money to undo what will seriously hurt Ontario's economy and standing in the world?