I am writing to express my…

I am writing to express my opposition to the proposed cancellation of the Cap and Trade program.

The most recent report of the United Nation’s International Panel on Climate change issues a stark warning. Unless governments around the world take "rapid, far-reaching and unprecedented changes in all aspects of society", the critical threshold of 1.5 degrees Celsius above pre-industrial levels will be reached by as early as 2030, increasing the risk of extreme drought, wildfires, floods and food shortages for hundreds of millions of people. This is not some distant threat - we are already seeing the impact of climate change today and not in some distant parts of the planet, but here in Canada. From the rapid melting of polar ice to extreme fire events and unprecedented flooding, including here in Ontario, we are seeing the impacts of climate change now.

The Cap and Trade program was initiated under the Pan-Canadian Framework to enable Canada to meet its Paris accord climate change commitments. As a citizen of Ontario, I believe it is important for our province to do its part to realize those commitments. Putting a price on carbon is essential to achieving the required reduction in CO2 emissions.

Cap and trade is effective in reducing greenhouse gas emissions. California, which was part of the same Cap and Trade regime, has recently announced that it is ahead of schedule in meeting its greenhouse gas emission targets, with emissions falling below 1990 levels, and that it is well on the way to reaching its ‘long-term goals to fight climate change’ (https://www.cbc.ca/news/world/california-greenhouse-1.4743473).

Cap and trade does not negatively affect economic performance. Quebec, which has also implemented Cap and Trade, continues to perform well. In June 2018, an RBC reported that QUEBEC was ‘An economy on a roll’, and went on to say ‘Pick your favourite reasons to feel good about the prospects for Quebec’s economy. Full employment is certainly on our list. And so are indications of the strongest economic growth achieved in 17 years last year and the end of fiscal restraint following back-to-back provincial government budget surpluses. Yet the best reason could well be that the elements are in place for the current expansion to continue at a brisk pace in 2018” (http://www.rbc.com/economics/economic-reports/pdf/provincial-forecasts/…). California has similarly continued to perform well economically, with economic growth of 3% expected in 2018. Ontario has also been experiencing strong economic growth, with recent TD Bank report noting ‘growth likely running at an above-trend annualized rate of 2.3% (https://economics.td.com/provincial-economic-forecast).

Putting a price on carbon, whether through cap and trade or a carbon tax, is essential if we are to meet our CO2 reduction targets. If the concern is the cost to taxpayers, then make the program revenue neutral - i.e. return the revenue gained through a carbon tax or cap and trade to taxpayers either through a reduction in income tax or direct payment.

As a taxpayer, I want to know what the real costs will be for cancellation of Cap and Trade. Will the companies who in good faith purchased carbon credits not need to be reimbursed? Will the funds provided by the federal government for the program need to be reimbursed? How will your government fund effective measures to combat climate change if not through the revenue generated through Cap and Trade?

I would strongly encourage you to reconsider the decision to cancel the Cap and Trade. I expect your government to take the commitments to address climate change seriously and to put in place effective measures that see real reductions in greenhouse gas emissions. The costs of inaction are simply too high.