Serious concerns over province's Cap-and-Trade Scheme, says Huron-Bruce MPP

The Ontario government has left a lot of questions unanswered for too long, surrounding several critical aspects of its Cap-and-Trade Scheme, and with the first compliance period approaching, the Liberals owe it to Ontarians to lay all the cards on the table, says Huron-Bruce MPP Lisa Thompson, Progressive Conservative (PC) environment and Cap-and-Trade critic.
 
In the Greenhouse Gas Progress Report 2016, released Nov. 22, Ontario's Environmental Commissioner (ECO) highlighted many of the concerns that the PC Party has continuously voiced since Cap-and-Trade was announced more than a year ago, said Thompson. Among these, were concerns about the excessive dependence on allowances from California, and the significant transfer of Ontario funds south of the border that this will bring.
 
"The ECO points out that Ontario is likely to be a net buyer of allowances from California, and is unsure when or if that would change," said Thompson. "Further, given the current legal atmosphere in California and the legislative uncertainty about whether that program will continue to be delivered post-2020, we are concerned that any credits purchased south of the border will nullify the efforts Ontario industries will have made to reduce Greenhouse Gas Emissions (GHGs)."
 
The ECO also identified that the continued lack of transparency on how emissions reductions will be accounted for, could lead to double-counting, and she raised serious concerns that the government has the capacity to siphon off auction proceeds for purposes beyond new GHG reductions as well.   
 
"We heard it from the Financial Accountability Officer when Bill 172 was being debated and we're hearing it again from the ECO; more transparency needs to be in place regarding the Greenhouse Gas Reduction Account," Thompson said. "Independent Officers of the Legislature should have the ability to perform their jobs and evaluate the competency of the government when handling public funds, especially given the current government's abysmal track record."
 
The Environmental Commissioner's Greenhouse Gas Progress Report can be found at the following link: http://docs.assets.eco.on.ca/reports/climate-change/2016/2016-Annual-GHG-Report-EN.pdf

Meanwhile, Wednesday (Nov. 23), the Financial Accountability Officer (FAO) revealed that money collected from the Cap-and-Trade Scheme is another cash grab that will do little to reduce emissions, said Thompson.
 
In his report, the FAO said that cash raised from Cap-and-Trade could "reduce the deficit in that year, and increase the deficit in future years." This would allow Ontario premier Kathleen Wynne and her government to balance the budget in an election year, followed by larger deficits in future years.
 
"Earlier this year, the FAO told us that the Liberals were using the one-time money from asset sales and contingency funds to artificially balance the budget in an election," said PC finance critic Vic Fedeli. "Now, he's confirmed what the Ontario PC caucus has said all along - the government's Cap-and-Trade plan is about raising revenues, not cutting emissions."
 
The FAO report also outlined the fiscal impact of four different scenarios on the deficit, and it turns out that there are a variety of methods that the Liberals could use to influence the deficit, despite their assurances that the money would be placed in a separate account, not general revenues, said Thompson.
 
"Like we said from the beginning, Cap-and-Trade is a disingenuous shell game that will do nothing to reduce emissions," she added. "The PC revenue-neutral carbon price would be transparent; we would pay back every cent to Ontarians, not play games with their money.
 
"This Liberal scheme is reckless, unrealistic, and has now been exposed for what it is, a cash grab. It is time for the government to work in the best interests of Ontarians, not the Liberal Party."
 
To view Thompson's question, click here:  https://www.youtube.com/watch?v=nGQ9TfcXHzk&t=153s 


The FAO's Cap and Trade: An Assessment of the Fiscal Impact of Cap and Trade report can be found by clicking here.