Ontario makes climate change deal

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Premier Kathleen Wynne has announced that Ontario is taking an “enormous step” to launch a cap-and-trade system for carbon emissions to battle climate change.

Wynne says companies are currently allowed to emit pollutants into the atmosphere for free — but now there will be a price.

The cap-and-trade will impose limits on emissions by companies. Those who want to burn more fossil fuels can buy carbon credits from those that burn less than they are allowed.

Wynne believes some plants will cut their carbon emissions to sell extra permits and others will lower emissions to avoid paying for additional credits. Cap-and-trade allows the government to mandate the exact reductions it wants to see.

The premier dismissed claims the cap-and-trade amounts to a tax grab. “I believe that they are fixated on the wrong costs because the cost of further delay, further pollution and further catastrophic and weather events. These are the costs that we cannot endure.”

Ontario will link with Quebec and California who already have the cap-and-trade system in place. That way companies in Ontario can buy permits from businesses in other jurisdictions.