The carbon tax for gas is eliminated! Effective July 3, 2018, Ontario cancelled the cap and trade regulation and prohibited all trading of emission allowances. It’s the end of cap and trade carbon tax era in Ontario.
Eliminating carbon taxes for gas will save the average family $260 per year and help reduce gas prices by 10 cents per litre.
In addition to saving families money, the elimination of the cap-and-trade carbon tax will remove a cost burden from Ontario businesses, allowing them to grow, create jobs and compete around the world.
“Ontario’s carbon tax era is over. Cancelling the cap-and-trade carbon tax is the right thing to do, a good thing to do and one more example of a promise made and a promise kept,” said the Ontario Minister of the Environment, Conservation and Parks.
The Ontario cap-and-trade program applied to all distributors of gasoline and natural gas, as well as large industrial emitters of carbon dioxide. It established individual caps on greenhouse gas emissions so companies are charged a dollar amount for every ton of emissions they produce, and a market for trading emission permits, also known as allowances.
The government’s announced legislation will include a plan to compensate eligible participants of the program, including the development of new regulations. Participants eligible for compensation will be required to meet the following criteria:
- Participants who were required to participate in the cap and trade program
- Participants whose accumulated costs are currently above and beyond their assessed emissions
- Participants who did not pass program costs down to consumers.
The proposed legislation will also include measures to help replace the cap-and-trade carbon tax with a better plan for achieving real environmental goals.