On May 3, 2019, the Saskatchewan Court of Appeal (SKCA) released
its lengthy decision in Reference re Greenhouse Gas Pollution Pricing
Act, 2019 SKCA 40. This much-anticipated decision represents
the first judicial consideration of whether Canada's federal
carbon tax regime is constitutionally compliant. The outcome was a
3-2 split decision, with a majority holding for the SKCA that the
Greenhouse Gas Pollution Pricing Act, SC 2018, c 12 (the
Act) is wholly constitutional.
Background
The Lieutenant Governor in Council for Saskatchewan
(Saskatchewan) initiated a reference to the SKCA to determine
whether the Act is unconstitutional in whole or in part.
Saskatchewan's challenge focused specifically on monetary
charges imposed on fossil fuels and emissions under Parts 1 and 2
of the Act.