Quebec and Ontario may be exempt from Trudeau’s Carbon Tax plan

in Canada/Other News by

Justin Trudeau has said that all provincial premiers must agree to impose or raise their carbon tax targets to the federal level. 

Quebec and Ontario may be exempt from some carbon tax rules since Quebec is already operating cap-and-trade systems. 

Quebec is already a partner with California in a carbon-trading system called the Western Climate Initiative (WCI) and Ontario says they will partner soon. 

From Finacial Post

Currently the permit price for carbon emissions in Quebec under the WCI is around $16 per tonne, higher than the federal tax’s introductory level. By 2020, however, the minimum national carbon tax will have risen to $30 while the floor price for permits in Ontario and Quebec is projected at just $19 per tonne. That gap is expected to grow. By 2022, when the national carbon tax hits $50, the WCI permit price is estimated at below $24. People in Alberta and B.C. will thus be taxed twice as much as Ontarians and Quebecers. Differences that large will pose a major threat to constitutional harmony.

What explains this massive price difference? California Scheming.

To smooth over political objections to pricing carbon, California deliberately created a vast oversupply of emissions permits in its electricity sector, pushing down prices and leaving the state awash in excess permits until at least 2026. The opportunity to harvest this crop of cheap permits is what’s driving Quebec and Ontario’s participation in the WCI — and why these permit prices will be substantially below Trudeau’s carbon-tax minimums. Without access to California’s low-cost permits, Ontario’s own research shows its permit prices would rise to a stunning $157 per tonne in just two years, destroying any argument for cap and trade.

Cap and trade thus offers Quebec and Ontario an enormous competitive advantage over provinces subject to Trudeau’s mandatory carbon tax, namely B.C., Alberta, and perhaps Saskatchewan and Newfoundland. How’s that for a national plan?

According to a federal policy backgrounder, provinces with cap-and-trade systems can avoid the minimum national tax if they meet two criteria. In addition to aligning themselves with federal 2030 emissions-reductions goals, cap-and-trade provinces must also have emissions targets for 2022 that “correspond, at a minimum, to the projected emissions reductions resulting from the carbon price that year in price-based systems.”

This seems to be a unfair advantage to the rest of Canada, do you agree? 

Jason grew up on a farm in Saskatchewan and moved to work in the Alberta oil patch for the last 10 years, he has a sense of humor and open mind, his goal is to provide factual news across Canada and the United States on politics, he hopes one day to work for many publishing networks around the world.


  1. Trudeau wants to hang onto his voting base so Ontario and Quebec will get a relatively free ride. The rest of Canada, especially Western Canada does not matter as far as votes go, so like his old man, he will totally screw us over.

    He is a spineless, self serving politician…no surprise here.

  2. The Federal Government doens’t have the authority to impose tax that applies to one province and not another. Any attempt to do so will die in the courts.

  3. What so the only ones that are gonna be paying this new taxed are Alberta, Newfoundland, PEI, Manitoba, Yukon and BC because so far the people that are exempt from his heart attacks are Ottawa, Quebec, and Saskatchewan, so how is this right.

  4. This country as I see it is one land ,one nation, ergo we ALL MUST live by the same rules. NO one province , NO separation of our nation. NO special consideration !!

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