Ontario Introduces Bill To Cancel Cap And Trade And Launches Carbon Tax Case

On July 25, the Honourable Rod Phillips, Minister of Environment, Conservation and Parks (the "Minister"), introduced Bill 4: Cap and Trade Cancellation Act, 2018, (the "Proposed Act"). The Proposed Act will repeal the cap and trade regime enacted under the previous government's Climate Change Mitigation and Low-carbon Economy Act, 2016 (the "CCM Act") and will retire or cancel the various cap and trade instruments (i.e., emissions allowances and offset credits, the "Instruments") currently held by Ontario participants ("Participants") under the cap and trade regime. The Proposed Act was introduced in the wake of then Premier-designate's June 15, 2018 announcement¹, that the first act of his newly formed government will be to cancel Ontario's Cap and Trade Program, and the enactment, as of July 3, 2018, O. Reg. 386/18 which terminates the Cap and Trade Program regulation and prohibits Participants from purchasing, selling, trading or otherwise dealing with Instruments.