Climate change is one of the…

Climate change is one of the most important global issues of our time. The real and rising costs of climate change are felt all across the province through severe weather, impacts on public infrastructure, and adverse impacts to public health. For example, the 2013 Ice Storm cost York Region an estimated $ 2.2 million; and the August flood in Toronto cost $80 million in insured damage; and Grey Bruce Health Unit predicts significant rising costs due to climate change health impacts.

In the absence of a strong policy to mitigate and adapt to climate change, these impacts will eventually cripple the Province. Therefore, I urge the Government of Ontario to reconsider Bill 4, to repeal the Climate Change Mitigation and Low-carbon Economy Act, 2016 and the wind down of the Cap and Trade Program.

Carbon emissions in our country do not belong to any one level of government, and as a result, national climate policy progress has been slow and ineffective. The reality of developing an effective national climate strategy within a federation that shares responsibility for emissions management is that national targets and direction are required. The Pan-Canadian Framework on Clean Growth and Climate Change is this federal government’s response to that need and Ontario’s Climate Change Mitigation and Low-carbon Economy Act was working to achieve those targets. Backing out of this Act is not in the best interest of Canadians.

The Premier has argued that the cap and trade system will hurt the people of Ontario. Indeed, carbon pricing increases the costs driving, flying, heating, and other activities based on the carbon dioxide it produces, but that’s the point. Individuals and businesses have choices and the cap is intended to foster behavioural changes.

The Premier has said he would join Saskatchewan's court challenge of the federal government's ability to impose a carbon price upon the provinces — a legal fight for which his party has budgeted $30 million over four years. As a taxpayer, I oppose $30 million of public funds being spent this way.

The provincial government expects to spend up to $5 million to compensate companies that bought into the province's cap-and-trade system—questionable math given the program's 272 participants who bought close to $3 billion in allowances. This is not only disruptive to business, but it incentivises bad behaviour and sends a signal to the business community that partisan politics will forever hinder the development of stable carbon markets.

Economists and business leaders have publically supported the Ontario market system because it provides investor certainty by enabling businesses to estimate allowance prices needed for their work; it offers greater environmental benefits by placing a fixed cap on emissions; and it has the potential to create a useful economic shock absorber because carbon allowance prices can be adjusted according to changing conditions. That also why increasingly, more and more, business leaders are standing up in support of a price on carbon and nearly 40 national and 20 sub-national jurisdictions are already participating or preparing for a carbon market scheme.

As well, the annual $2 billion proceeds from the auction of allowances were being used to support low-carbon solutions and adaptation projects that will boost the green economy and shield the province from economic damages from extreme weather events. The need for such investments has been reinforced numerous times by all levels of government, academia, and business, including the September 18th report from the Insurance Bureau of Canada, which noted that natural infrastructure is fundamentally important to limiting the financial impact of climate change in coastal and inland environments. The cap and trade system is a wholly appropriate and fiscally responsible way for the province to generate those funds.

By repealing the cap and trade system, the government is sending a message to business and investors that politicians and petty politics will forever prevent any degree of certainty in climate policy. It also eliminates the progress that has been made bilaterally and bi-nationally through the Western Climate Initiative. In short, carbon pricing is the most efficient and effective way of reducing greenhouse gas emissions. Delaying these reductions further is an irresponsible choice.

Bill 4 and efforts to repeal the Climate Change Mitigation and Low-carbon Economy Act, 2016 is the wrong answer for Ontarians. I urge the present government to choose a more constructive approach and to channel the funds being dedicated to these efforts to projects that will instead accelerate climate progress.