Statement from Minister Yurek Following the Ontario Court of Appeal’s Decision

“Ontario is disappointed that the Court did not accept Ontario’s position that the federal carbon tax is an unconstitutional tax,” said Premier Doug Ford. “We know, as do the people of this province, that the federal government’s carbon tax is making life more expensive for Ontarians and is putting jobs and businesses at risk. We promised to use every tool at our disposal to challenge the carbon tax and we will continue to fight to keep this promise.”

Minister Yurek added, “Ontario will be appealing this decision to the Supreme Court of Canada. Ontario doesn’t need a carbon tax to address climate change. Our Made-in-Ontario Environment Plan considers our province’s specific priorities, challenges and opportunities, and commits to meeting Canada’s greenhouse gas emissions target of 30 per cent below 2005 levels by 2030, without imposing a carbon tax on the people of our province.

As committed to in our Made-in-Ontario Environment Plan, our government is working to finalize a new emissions performance standards regulation that will ensure large industrial polluters are accountable for their greenhouse gas emissions. This made-in-Ontario solution is an alternative to the federal output-based pricing system and will recognize the unique circumstances of Ontario’s economy while allowing for economic growth. Unlike the federal government’s carbon tax, the emissions performance standards is not a tax on the fuels Ontarians use for heating their homes and fueling their cars, or that small businesses use to run their operations. As a result, it will not increase the price of everyday essentials, like home heating and groceries.

Ontario continues to stand united with our coalition of provinces, including Saskatchewan, Alberta, Manitoba and New Brunswick, pledged to fight the federal government’s Greenhouse Gas Pollution Pricing Act. Ontario has intervened in Saskatchewan’s appeal of its reference to the Supreme Court of Canada and in Manitoba’s application for judicial review in the Federal Court. We will also be seeking to intervene in Alberta’s challenge.

Our government remains committed to standing up for the people by protecting jobs and making life more affordable in a way that ensures we have both a healthy environment and a healthy economy.”

QUICK FACTS

• The federal carbon tax on fuels came into effect on April 1, 2019. It increased the price of gasoline in Ontario by 4.4 cents per litre. This will rise to 6.6 cents in 2020, 8.8 cents in 2021, and 11.1 cents per litre in April 2022.
• The federal carbon tax will cost a typical household $648 a year by 2022.
• The federal carbon tax will impact essential services and industries in Ontario, costing:
  • The long-haul trucking sector over $774 million in 2022;
  • Hospitals an additional $27.2 million in heating costs in 2022;
  • Nursing and seniors’ care homes an additional $16.7 million in heating costs in 2022;
  • Colleges and universities an additional $24 million in heating costs in 2022;
  • Correctional facilities and Ontario Provincial Police detachments over $1.4 million in heating costs by 2022;
  • Small businesses an average of $1,000 in heating costs in 2022.
• The federal government’s output-based pricing system applies to industrial emissions that occur on or after January 1, 2019.
• Ontario is working to finalize an emissions performance standards regulation for large emitters that recognizes the unique circumstances of Ontario’s economy and its manufacturing sector. This approach would reduce emissions from industry, helping Ontario achieve its proposed emissions reduction target without imposing a carbon tax on fuels.
• Like other provinces, the government plans to have the standards in place in the summer of 2019 and will work closely with the federal government to ensure Ontario industry is not double regulated.