Clearing The Air: Supreme Court Upholds Federal Carbon Pricing Regime

"Climate change is real. It is caused by greenhouse gas emissions resulting from human activities, and it poses a grave threat to humanity's future." – Chief Justice Wagner

The Supreme Court of Canada released its decision yesterday in three references out of Saskatchewan, Ontario and Alberta concerning the constitutionality of the Greenhouse Gas Pollution Pricing Act, S.C. 2018, c. 12, s. 186 (the GGPPA). In a 6-3 decision, the Supreme Court upheld the GGPPA as a valid exercise of the federal government's power to legislate for the peace, order and good government of Canada (the POGG power).

The Court's decision represents a major victory for the Government of Canada¹, upholding its flagship climate policy and affirming its constitutional authority to establish minimum national standards of carbon pricing. Importantly, this decision provides much needed clarity and finality with respect to federal and provincial jurisdiction over climate policy. Further, the