Canadian Provinces Fighting Back Against Trudeau’s Carbon Tax

Saskatchewan was first to oppose Canada’s federal carbon tax plan. Recently, Ontario joined the western province in opposition. The provinces are challenging the federal government’s authority to impose a carbon tax on provinces that do not comply with Canada’s climate change plan. To meet Canada’s international commitments, the Canadian government threatened to institute a carbon tax in any province that does not implement an effective form of carbon pricing to reduce its emissions. Provinces and territories have been given the option to come up with their own carbon tax or cap-and-trade system. If they fail to do so, the Canadian government will impose its own plan. The Canadian government announced last year it was giving the provinces and territories until the beginning of September to outline how they are implementing carbon pricing systems that meet the federal standard. Those standards originally required a carbon price of $10 a metric ton be implemented this year, increasing to $20 on January 1, 2019 and to $50 in 2022.​ Trudeau’s government, however, has pushed back the imposition of the tax by one year. It is set to, take effect in January.

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