The existing Cap and Trade program in Ontario has been cancelled. However, the Federal government still has a national plan for a carbon tax. With the elimination of the Provincial program, Ontario will need to decide on another plan or likely be subjected to the Federal carbon tax backstop effective January 1, 2019.
The backstop is intended for any province that does not have its own program in place. The program ensures that Canada can meet its emission commitments. In 2015 Canada agreed to set national targets to cut GHG (greenhouse gas emissions).
Canada’s sustainability goals were established under the Paris agreement on climate change and in the Pan-Canadian Framework on Clean Growth and Climate Change.
The country has committed to reduce its economy-wide emissions 30 per cent below 2005 levels by 2030 and 80 per cent by 2050.
