"Ontario’s new Progressive Conservative government has tabled legislation to kill the province’s cap-and-trade program, which put a price on carbon emissions, but will pay virtually no compensation to the companies that purchased $2.9-billion in emission allowances under the plan.
In a news conference Wednesday, Environment Minister Rod Phillips said most of the allowances were acquired to cover the companies’ regulatory obligations over the past two years, so there is no need for compensation. However, many firms bought additional emissions permits on the assumption that prices would rise over the next few years and have urged the government to work with them to set a fair reimbursement.
Mr. Phillips said gasoline and diesel marketers and natural gas distributors have already recouped the cost of the allowances by passing them on to their customers. As well, market traders purchased some $67-million in allowances, and the government is under no obligation to compensate “speculators,” he said. Instead, the government has earmarked $5-million to cover fuel companies that bought allowances for 2018 and have not been able to pass on the costs."
Shawn McCarthy reports for the Toronto Globe and Mail July 25, 2018.
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