Bill 4, Cap and Trade…

Bill 4, Cap and Trade Cancellation Act, is an appalling assault on the environment and on democracy. Today, on Oct. 8, 2018, the laureates for the Nobel Prize in Economics were announced. They are William Nordhaus and Paul Romer for their independent work on economics related to climate change. In the Press Release issued by The Royal Swedish Academy of Sciences, regarding the work of William Nordhaus, the award was given "for integrating climate change into long-run macroeconomic analysis". In the case of Paul Romer, the award was given "for integrating technological innovations into long-run macroeconomic analysis”. The press release further states "Nordhaus’ model is now widely spread and is used to simulate how the economy and the climate co-evolve. It is used to examine the consequences of climate policy interventions, for example carbon taxes." These Nobel laureates have commented on how important it is to the health of our planet to have some form of carbon tax in place to influence human behaviour to find ways of reducing our consumption of fossil fuels which are significantly adding carbon dioxide to our atmosphere and destroying our planet.

On the same day, the UN Intergovernmental Panel on Climate Change (IPCC) issued its report which paints a very bleak picture of the future if we do not curb our consumption of fossil fuels dramatically in the very near future.

Bill 4 destroys the modest steps which have already been taken by previous governments to put us on the path to addressing the very serious issues concerning climate change which reputable scientists around the world including Nordhaus and Romer and the scientists who wrote the UN IPCC report, have been telling us for years.

The cancellation of over 750 renewable energy projects by the current Ontario government, is yet another assault on our environment and democracy which is shameful.

With respect to Bill 4's assault on democracy, let me first refer to the text put out by the Ontario government describing this Bill.

"With respect to the wind down of the Cap and Trade Program, the matters addressed by the Act include the following:
1. The retirement and cancellation of cap and trade instruments.
2. The payment by the Crown of compensation in respect of cap and trade instruments, the amount of which is to be determined in accordance with the regulations. The obligation to pay compensation is subject to various limitations set out in the Act.
3. Preventing any cause of action from arising against the Crown and specified related persons as a result of various specified matters, including the enactment of the Act and the repeal of the Climate Change Mitigation and Low-carbon Economy Act, 2016.
4. The extinguishment of any existing proceedings, and the prevention of any future proceedings, against the Crown and other specified related persons, in relation to specified matters."

Points 2, 3 and 4 are totally unethical and contrary to democratic principles. In point 2, the text reads ".. the amount of which is to be determined in accordance with the regulations". But then in the same point we read "The obligation to pay compensation is subject to various limitations set out in the Act." In other words, it doesn't matter what the regulations state - these regulations already having been agreed to by the parties which have signed the Cap and Trade agreement. The Act proposes to override these regulations by unilaterally imposing limitations on the amounts to be paid.

Points 3 and 4 are also unethical and totally undemocratic. They propose to prevent a party from taking action against the Crown for any violation made by the Crown of the terms of previously signed contracts. Not only is this unethical, if this bill were implemented, it would be a major deterrent for any company doing business with the Crown in Ontario. If contracts can be torn up by the Crown as this current government has already done with respect to more than 750 renewable energy projects, without any recourse possible by the other parties which are signatory to these contracts, why would such parties want to invest in Ontario?

Bill 4 is an abomination and it is shameful that this government has even considered it.