Premier Doug Ford’s move to scrap Ontario’s cap-and-trade alliance with Quebec and California will deal a $3-billion blow to the treasury, according to the province’s financial accountability officer.“By cancelling the cap-and-trade program, the province’s annual budget balance will worsen by a cumulative total of $3 billion over the next four years,” Peter Weltman warned Tuesday.Read more: Ontario’s environmental commissioner slams Ford government over ‘gutted’ climate change policies Quebec calls on Doug Ford to reverse plan to scrap cap-and-trade programDoug Ford aims to lower gas prices by ending Ontario’s cap-and-trade of carbon dioxide emissions “The province’s budget balance worsens because the loss of cap-and-trade revenue from ending the auction of emission allowances is greater than the savings achieved from cancelling cap-and-trade-related spending programs,” said Weltman.Beyond any environmental impact of withdrawing from the climate accord, Ontario will now be subject to Prime Minister Justin Trudeau’s forthcoming federal carbon-pricing scheme.It was exempt from that while it was part of the two-year-old cap-and-trade accord with Quebec and California.“Beginning in 2020, the federal carbon-pricing backstop will result in increased costs to Ontario households and businesses, but will also generate more ... revenue,” the watchdog said.“To illustrate, under the cancelled cap-and-trade program, the FAO estimates that a typical Ontario household would pay additional costs of $264 in 2019, rising to $312 by 2022,” he said.“Under the federal backstop, a typical Ontario household would pay additional costs of $258 in 2019, rising to $648 in 2022.”In a cap-and-trade system, businesses have greenhouse-gas emission limits — or caps — and those who pollute less can sell — or trade — credits for these to those who emit m ...
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