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ARTICLE · 11 OCTOBER 2018

Ontario's Cap And Trade Program Ends And Federal Backstop Looms: Implications For Ontario Businesses

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Until recently, few people in Ontario paid much attention to the "Federal Backstop," the federal carbon pricing system for provinces without a carbon tax or cap and trade program.

CanadaEnvironment
Alexandra Sadvari
Alexandra Sadvari
Liane Langstaff
Liane Langstaff
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Until recently, few people in Ontario paid much attention to the "Federal Backstop," the federal carbon pricing system for provinces without a carbon tax or cap and trade program. However, when the provincial government ended Ontario's cap and trade program by repealing the cap and trade regulation effective July 3, 2018, Ontario was suddenly left open to the application of the Federal Backstop.

While the Ontario government is currently challenging the constitutional authority of the federal government to impose the Federal Backstop on Ontario, many Ontario corporations are preparing to comply with the federal regime.

End of Cap and Trade in Ontario

On July 3, 2018, Ontario revoked the Cap and Trade Regulation (Ontario Regulation 144/16: The Cap and Trade Regulation) and all the other regulations under the Climate Change Mitigation and Low-carbon Economy Act, 2016, effectively ending the short-lived cap and trade program in Ontario. The revocation regulation, Ont

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