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Ontario and Saskatchewan in Court Over Carbon Tax

The province of Saskatchewan argued to the Saskatchewan Court of Appeals that the federal government should not be able to impose a carbon tax on unwilling provinces, which also include Ontario and New Brunswick. Representatives for the federal government argued that it is a “regulatory charge,” not a tax, and that carbon emissions fall within federal jurisdiction because they are a matter of “national concern.”

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Carbon Pricing in Canada

Carbon pricing plans impose a cost on the combustion of fossil fuels by industries and consumers — either directly through a tax, or indirectly through a cap-and-trade system. In a market economy like Canada’s, prices help regulate the supply and demand of goods and services. By influencing the price of a commodity like gasoline, through carbon pricing, governments aim to discourage its use and thereby reduce the greenhouse gas emissions that result from its consumption.

In 2016, Prime Minister Justin Trudeau announced a national climate-change policy that included a system of carbon pricing across Canada. As of June 2019, eight provinces and territories have carbon pricing plans that meet the requirements of the national policy. In the remaining provinces — Saskatchewan, Manitoba, Ontario and New Brunswick — Ottawa imposed or intends to impose its own carbon tax. The tax has vocal opponents on the political right, including some premiers and party leaders.