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Canadian Supreme Court says the federal carbon price is constitutional
The split decision upholds a pivotal part of the Liberal climate-change plan, accounting for at least one-third of the emissions Canada aims to cut over the next decade.
Chief Justice Richard Wagner says in the written ruling that climate change is a real danger and evidence shows a price on pollution is a critical element in addressing it.
“It is a threat of the highest order to the country, and indeed to the world,” Wagner wrote for six of the nine judges
Given that, said Wagner, Canada’s evidence that this is a matter of national concern, is sound.
“The undisputed existence of a threat to the future of humanity cannot be ignored,” he wrote.
Environment Minister Jonathan Wilkinson issued an immediate statement lauding the decision as "a win for the millions of Canadians who believe we must build a prosperous economy that fights climate change."
"The question is whether this decision will put an end to the efforts of Conservative politicians fighting climate action in court, and whether they will join Canadians in fighting climate change."
The onus was on the federal government to prove to the court that this is an issue of national concern that would allow it to take control of the matter rather than leaving it to the provinces.
The majority of the court found the federal government did that, noting all parties, including the provinces challenging the law, agreed climate change is “an existential challenge.”
“This context, on its own, provides some assurance that in the case at bar, Canada is not seeking to invoke the national concern doctrine too lightly," Wagner wrote.
Wagner also wrote provinces can’t set minimum national standards on their own and if even one province fails to reduce its emissions, that could have an inordinate impact on other provinces.
He noted that the three provinces that challenged the ruling also withdrew from the Pan-Canadian Framework on Clean Growth and Climate Change. That agreement, signed in 2016, agreed to set a national carbon price.
"When provinces that are collectively responsible for more than two-thirds of Canada's total GHG emissions opt out of a cooperative scheme, this illustrates the stark limitations of a non-binding cooperative approach," he wrote.
That left the remaining provinces, responsible for only one-third of Canada's total emissions, "vulnerable to the consequences of the lion's share of the emissions being generated by the non-participating provinces."
He also said climate change in Canada is having a disproportionate impact on the Canadian Arctic, coastal communities and Indigenous territories.
Justice Suzanne Côté dissented in part, agreeing climate change is an issue of national concern but taking issue with the power the federal cabinet gave itself to adjust the law's scope, including which fuels the price would apply to.
Justices Malcolm Rowe and Russell Brown dissented with the entire decision, arguing Canada had not shown that climate change reaches the level of national concern. They objected that the precedent the majority's decision sets would allow Ottawa to set minimum national standards in all areas of provincial jurisdiction.
Wagner pushed back, finding there is a limited scope for national standards that is unchanged by this ruling.
Canada implemented the Greenhouse Gas Pollution Pricing Act in 2019, setting a minimum price on carbon emissions in provinces that don’t have equivalent provincial prices, a law that was challenged by Saskatchewan, Ontario and Alberta.
The program applies a price per tonne to fuel purchases by individuals and businesses with lower emissions, and on part of the actual emissions produced by entities with large emissions, such as pipelines, manufacturing plants and coal-fired power plants.
The federal fuel-input charge applies in Ontario, Manitoba, Saskatchewan and Alberta, while the federal charge for big emitters currently covers only Manitoba and Prince Edward Island.
All other provinces have systems that meet the federal threshold.
The territories adopted the federal fuel charge.
This report by The Canadian Press was first published March 25, 2021.
A quick look at some of the reaction to the Supreme Court carbon tax decision
OTTAWA — The Supreme Court of Canada ruled Thursday the federal carbon price is entirely constitutional. Here's a quick look at some of the reaction to the decision:© Provided by The Canadian Press
"We welcome the Supreme Court's ruling, but Canadians are still worried about the climate crisis and the lack of meaningful action from the Liberal government. They’re being asked to do their part, and they want to know it is making a real difference."
— Laurel Collins, NDP critic for Environment and Climate Change
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“Small firms simply cannot afford a further increase in their overall tax burden, especially as many remain in full lockdown or subject to significant COVID-19 related restrictions.”
— Dan Kelly, president of the Canadian Federation of Independent Business
———
“The fact remains that this tax represents higher costs for millions of Canadian families and businesses, causing significant economic pain in exchange for no environmental gain."
— Aaron Wudrick, federal director of the Canadian Taxpayers Federation
BULLSHIT 80% OF CANADIANS WOULD GET A REBATE
This report by The Canadian Press was first published March 25, 2021.
The Canadian Press
This report by The Canadian Press was first published March 25, 2021.
The Canadian Press
Canada's top court upholds pillar of Trudeau's plan to fight climate change
By Nia Williams and Steve Scherer
© Reuters/MARK BLINCH FILE PHOTO: Canada's Prime Minister Trudeau speaks during a Liberal Climate Action Rally in Toronto
CALGARY, Alberta/OTTAWA (Reuters) -Canada's Supreme Court ruled in favour of the federal government's carbon pricing policy on Thursday, upholding a central pillar of Prime Minister Justin's Trudeau's climate plan and overriding opposition from some provinces.
The country's top court said climate change is a threat to the country as a whole and upheld the legality of the Greenhouse Gas Pollution Pricing Act, which had been challenged by the provinces of Alberta, Saskatchewan and Ontario.
Carbon pricing, often called a carbon tax by opponents, is the lynchpin of the federal government's plan to ultimately reach net-zero emissions by 2050. Ottawa will steadily ramp up the price of carbon to C$170 ($135.08) a ton by 2030, from C$30 a ton currently.
Canada is the fourth-largest oil producer in the world and the fifth-largest greenhouse gas emitter on a per capita basis.
"Parliament has jurisdiction to enact this law as a matter of national concern," Chief Justice Richard Wagner wrote in the ruling. "All parties to this proceeding agree that climate change is an existential challenge. It is a threat of the highest order to the country, and indeed to the world."
Under the carbon pricing act, Ottawa can impose a federal levy on provinces that do not have an adequate carbon pricing system of their own. Opposing provinces argued this infringed on their jurisdiction, but the Supreme Court ruled federal intervention was justified.
The ruling was backed by six members of the nine-member court, with three dissenting opinions.
"This decision is a win for the millions of Canadians who believe we must build a prosperous economy that fights climate change," Environment Minister Jonathan Wilkinson said in a statement.
Canada needs to cut emissions by 30% below 2005 levels by 2030 to fulfil its international climate commitments, which would involve slashing annual emissions to 511 megatons, compared with 729 megatons in 2018.
The Liberals unveiled a strengthened climate plan last year aimed at reducing emissions to 503 megatons.
Saskatchewan Premier Scott Moe said his government would unveil its own climate measures to avoid being subject to the "punitive and ineffective" federal carbon tax.
"Today's decision by the Supreme Court of Canada does not change our core conviction that the federal carbon tax is bad environmental policy, bad economic policy, and simply wrong," Moe said in a statement.
Ontario also released a statement outlining its own environment plan and Alberta did not immediately comment.
The Canadian Chamber of Commerce (CCC) said the Supreme Court ruling provided policy certainty, but concerns remained about the competitiveness of Canadian businesses. "The issue is divisive for many Canadians," said Aaron Henry, a senior director at the CCC.
CALGARY, Alberta/OTTAWA (Reuters) -Canada's Supreme Court ruled in favour of the federal government's carbon pricing policy on Thursday, upholding a central pillar of Prime Minister Justin's Trudeau's climate plan and overriding opposition from some provinces.
The country's top court said climate change is a threat to the country as a whole and upheld the legality of the Greenhouse Gas Pollution Pricing Act, which had been challenged by the provinces of Alberta, Saskatchewan and Ontario.
Carbon pricing, often called a carbon tax by opponents, is the lynchpin of the federal government's plan to ultimately reach net-zero emissions by 2050. Ottawa will steadily ramp up the price of carbon to C$170 ($135.08) a ton by 2030, from C$30 a ton currently.
Canada is the fourth-largest oil producer in the world and the fifth-largest greenhouse gas emitter on a per capita basis.
"Parliament has jurisdiction to enact this law as a matter of national concern," Chief Justice Richard Wagner wrote in the ruling. "All parties to this proceeding agree that climate change is an existential challenge. It is a threat of the highest order to the country, and indeed to the world."
Under the carbon pricing act, Ottawa can impose a federal levy on provinces that do not have an adequate carbon pricing system of their own. Opposing provinces argued this infringed on their jurisdiction, but the Supreme Court ruled federal intervention was justified.
The ruling was backed by six members of the nine-member court, with three dissenting opinions.
"This decision is a win for the millions of Canadians who believe we must build a prosperous economy that fights climate change," Environment Minister Jonathan Wilkinson said in a statement.
Canada needs to cut emissions by 30% below 2005 levels by 2030 to fulfil its international climate commitments, which would involve slashing annual emissions to 511 megatons, compared with 729 megatons in 2018.
The Liberals unveiled a strengthened climate plan last year aimed at reducing emissions to 503 megatons.
Saskatchewan Premier Scott Moe said his government would unveil its own climate measures to avoid being subject to the "punitive and ineffective" federal carbon tax.
"Today's decision by the Supreme Court of Canada does not change our core conviction that the federal carbon tax is bad environmental policy, bad economic policy, and simply wrong," Moe said in a statement.
Ontario also released a statement outlining its own environment plan and Alberta did not immediately comment.
The Canadian Chamber of Commerce (CCC) said the Supreme Court ruling provided policy certainty, but concerns remained about the competitiveness of Canadian businesses. "The issue is divisive for many Canadians," said Aaron Henry, a senior director at the CCC.
BULLSHIT
($1 = 1.2585 Canadian dollars)
(Reporting by Nia Williams; Editing by Hugh Lawson and Nick Zieminski)
Saskatchewan NDP respond to carbon tax defeat at Supreme Court
Ottawa – The governments of Saskatchewan, Ontario and Alberta suffered a defeat in their battle against the federal carbon tax on March 25 as the Supreme Court of Canada ruled 6-3 against their joint challenge. The ever-increasing carbon tax is the key initiative in Prime Minister Justin Trudeau’s fight against climate change. By 2030, that carbon tax is supposed to rise to $170 per tonne of CO2 equivalent, after having been introduced at $20 per tonne.
Saskatchewan’s Official Opposition New Democratic Party Leader Ryan Meili responded in an emailed statement. He said: “The Saskatchewan NDP caucus is focused on creating good jobs here in Saskatchewan, and prosperity for our province’s families and businesses. Today’s ruling means that Trudeau’s economy-wide carbon tax will continue to take more from the people of Saskatchewan than they get back, with people living in rural and remote areas being most affected. That’s not right.
“This economy-wide price on carbon is not something that Saskatchewan people, or the Saskatchewan NDP support. Scott Moe chose to maintain the Trudeau carbon tax for two whole years instead of trying to negotiate a better deal.
“With the decision reached today, Scott Moe and the Sask. Party government must act quickly to negotiate a better deal that protects Saskatchewan’s economy and gives working families a break, including:
· Exempts fuel used for grain drying
· Explores all options to limit costs for families
· Ensures rebates leave regular families with more money in their pockets than they pay in carbon tax”
The continued ratchetting up of the carbon tax is also an issue, according to Meili. He said, “The federal government must press pause on its plans to dramatically increase the carbon tax, especially while so many families across the country - not just in Saskatchewan - are struggling coming through the pandemic. Now is not the time to increase costs on working families.
“Justin Trudeau must also acknowledge that the carbon tax disproportionately affects the Saskatchewan economy. With that fact comes a responsibility on the federal government to make dedicated investments that will make a difference here including support for workers in our hard-hit industries and helping to create good sustainable jobs in renewable energy. Saskatchewan has many opportunities in biofuels, geothermal, solar and wind energy, but we need the federal support to kickstart these new industries.
“The people of Saskatchewan know climate change is real, and want to do their part to reduce emissions while creating good jobs for the future in wind, solar, and geothermal. It’s time for Justin Trudeau and Scott Moe to put wrangling aside and get to work - together - on real solutions across the board that will ensure good jobs and prosperity for all of us.”
Brian Zinchuk, Local Journalism Initiative reporter, Estevan Mercury
‘Simply wrong’: Saskatchewan Premier Scott Moe reacts to Supreme Court carbon price ruling
© Michael Bell / The Canadian Press On Thursday, the Supreme Court of Canada gave the federal government the constitutional right to impose a carbon tax on provinces.
Saskatchewan Premier Scott Moe says the province isn’t changing its stance on carbon pricing following Thursday’s decision by the Supreme Court of Canada to allow the federal government to impose it on provinces.
“The federal carbon tax is bad environmental policy, bad economic policy, and simply wrong,” Moe said in a statement Thursday.
“While the Supreme Court has determined that Prime Minister Trudeau has the legal right to impose a carbon tax, it doesn’t mean he should, and it doesn’t make the carbon tax any less punitive for Saskatchewan people.”
The federal carbon-tax-and-rebate program was introduced in 2018 and laid out a national framework for pricing carbon — one that applies to everyday consumers as well as industrial emitters.
Read more: Canada’s carbon price is constitutional, Supreme Court rules
The Supreme Court of Canada found that climate change poses a real, serious threat to the world and is serious enough to allow the federal government to step in.
“The (Greenhouse Gas Pollution Pricing Act) is constitutional,” Chief Justice Richard Wagner wrote in the decision.
“Although this restriction may interfere with a province’s preferred balance between economic and environmental considerations, it is necessary to consider the interests that would be harmed — owing to irreversible consequences for the environment, for human health and safety, and for the economy — if Parliament were unable to constitutionally address the matter at a national level.”
Under the ruling, Ottawa would collect the carbon tax in Saskatchewan, then provide rebates to individual tax filers in the province.
Revenue Canada says the average household of four can expect about $1,000 in rebates for 2020.
Moe warns the decision has “far-reaching implications for federal intrusion into areas of provincial jurisdiction.”
“Saskatchewan will remain vigilant in defending our constitutional jurisdiction from further infringement from this federal government,” Moe said.
“Saskatchewan people have seen the federal carbon tax for what it is — a blunt, ineffective instrument that kills job, threatens the competitiveness of our industries, and penalizes essential, daily activities of families across our province.
“Our government will continue to make every effort to protect Saskatchewan families, workers and businesses from the negative consequences of the federal carbon tax.”
The Saskatchewan NDP shares similar feelings as the province, saying the carbon-tax-and-rebate program will hurt Saskatchewan people.
Read more: Farmers concerned criteria for federal carbon credits may leave them out
“(Thursday’s) ruling means that Trudeau’s economy-wide carbon tax will continue to take more from the people of Saskatchewan than they get back, with people living in rural and remote areas being most affected. That’s not right,” Ryan Meili, Saskatchewan NDP leader, said in a statement Thursday.
“This economy-wide price on carbon is not something that Saskatchewan people, or the Saskatchewan NDP support.”
Meili said Moe should have spent the past two years trying to negotiate a better deal with the federal government rather than fighting against it.
He would like Moe to begin negotiating a deal with Trudeau that would exempt fuel used for grain drying, explore all options to limit costs for families, and offer rebates to families to offset the cost of a carbon tax.
Read more: Is Canada’s carbon tax working? Experts, advocacy groups weigh in
“The people of Saskatchewan know climate change is real, and want to do their part to reduce emissions while creating good jobs for the future in wind, solar, and geothermal,” Meili said.
“It’s time for Justin Trudeau and Scott Moe to put wrangling aside and get to work - together - on real solutions across the board that will ensure good jobs and prosperity for all of us.”
The Saskatchewan Chamber of Commerce also expressed its disappointment regarding Thursday’s ruling.
VIDEO
Supreme Court of Canada rules federal carbon levy is constitutional
“To be clear, the debate is not, and should not, be whether we need to transition to a lower carbon economy, but how to manage the process,” said Steve McLellan, Saskatchewan Chamber of Commerce CEO in a statement Thursday.
“There is a better way forward, the federal government’s pan-Canadian approach to pollution pricing has not recognized the unique challenges present in Saskatchewan; putting undue hardship on our residents and businesses, it is unfortunate that they will continue this approach.”
Moe said he will outline measures the province will take in the months ahead to “protect Saskatchewan people” on Thursday, at the same time addressing climate change.
-With files from Rachel Gilmore
Saskatchewan Premier Scott Moe says the province isn’t changing its stance on carbon pricing following Thursday’s decision by the Supreme Court of Canada to allow the federal government to impose it on provinces.
“The federal carbon tax is bad environmental policy, bad economic policy, and simply wrong,” Moe said in a statement Thursday.
“While the Supreme Court has determined that Prime Minister Trudeau has the legal right to impose a carbon tax, it doesn’t mean he should, and it doesn’t make the carbon tax any less punitive for Saskatchewan people.”
The federal carbon-tax-and-rebate program was introduced in 2018 and laid out a national framework for pricing carbon — one that applies to everyday consumers as well as industrial emitters.
Read more: Canada’s carbon price is constitutional, Supreme Court rules
The Supreme Court of Canada found that climate change poses a real, serious threat to the world and is serious enough to allow the federal government to step in.
“The (Greenhouse Gas Pollution Pricing Act) is constitutional,” Chief Justice Richard Wagner wrote in the decision.
“Although this restriction may interfere with a province’s preferred balance between economic and environmental considerations, it is necessary to consider the interests that would be harmed — owing to irreversible consequences for the environment, for human health and safety, and for the economy — if Parliament were unable to constitutionally address the matter at a national level.”
Under the ruling, Ottawa would collect the carbon tax in Saskatchewan, then provide rebates to individual tax filers in the province.
Revenue Canada says the average household of four can expect about $1,000 in rebates for 2020.
Moe warns the decision has “far-reaching implications for federal intrusion into areas of provincial jurisdiction.”
“Saskatchewan will remain vigilant in defending our constitutional jurisdiction from further infringement from this federal government,” Moe said.
“Saskatchewan people have seen the federal carbon tax for what it is — a blunt, ineffective instrument that kills job, threatens the competitiveness of our industries, and penalizes essential, daily activities of families across our province.
“Our government will continue to make every effort to protect Saskatchewan families, workers and businesses from the negative consequences of the federal carbon tax.”
The Saskatchewan NDP shares similar feelings as the province, saying the carbon-tax-and-rebate program will hurt Saskatchewan people.
Read more: Farmers concerned criteria for federal carbon credits may leave them out
“(Thursday’s) ruling means that Trudeau’s economy-wide carbon tax will continue to take more from the people of Saskatchewan than they get back, with people living in rural and remote areas being most affected. That’s not right,” Ryan Meili, Saskatchewan NDP leader, said in a statement Thursday.
“This economy-wide price on carbon is not something that Saskatchewan people, or the Saskatchewan NDP support.”
Meili said Moe should have spent the past two years trying to negotiate a better deal with the federal government rather than fighting against it.
He would like Moe to begin negotiating a deal with Trudeau that would exempt fuel used for grain drying, explore all options to limit costs for families, and offer rebates to families to offset the cost of a carbon tax.
Read more: Is Canada’s carbon tax working? Experts, advocacy groups weigh in
“The people of Saskatchewan know climate change is real, and want to do their part to reduce emissions while creating good jobs for the future in wind, solar, and geothermal,” Meili said.
“It’s time for Justin Trudeau and Scott Moe to put wrangling aside and get to work - together - on real solutions across the board that will ensure good jobs and prosperity for all of us.”
The Saskatchewan Chamber of Commerce also expressed its disappointment regarding Thursday’s ruling.
VIDEO
Supreme Court of Canada rules federal carbon levy is constitutional
“To be clear, the debate is not, and should not, be whether we need to transition to a lower carbon economy, but how to manage the process,” said Steve McLellan, Saskatchewan Chamber of Commerce CEO in a statement Thursday.
“There is a better way forward, the federal government’s pan-Canadian approach to pollution pricing has not recognized the unique challenges present in Saskatchewan; putting undue hardship on our residents and businesses, it is unfortunate that they will continue this approach.”
Moe said he will outline measures the province will take in the months ahead to “protect Saskatchewan people” on Thursday, at the same time addressing climate change.
-With files from Rachel Gilmore
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