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| Fri, 26th Mar 2021 10:14:00 |
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Canada's Supreme Court rules in favour of national carbon tax |
Canada's national carbon tax will remain intact after the country's Supreme Court ruled in favour of its legality.
The federal law sets minimum standards for carbon pricing with the intent to price out emissions over time.
Three provincial governments had pushed back on the plan, arguing Ottawa overstepped its role with the scheme.
The court's decision bolsters the key component in a national effort to curb greenhouse gas emissions.
The tax plan has been the central driving force in Prime Minister Justin Trudeau's goal of achieving net-zero emissions by 2050.
But it was a topic of contention in the last federal election, with conservative opponents arguing it hurts consumers and energy producers.
- Canada 'warming faster than rest of world'
- Is Trudeau doing enough on climate change?
What is Trudeau's carbon tax?
The 2018 Greenhouse Gas Pricing Act is a national framework for carbon pricing.
It sets minimum pricing standards for provinces to meet.
Provinces were allowed to implement their own plans.
However, the law gives the federal government in Ottawa the power to apply its own carbon tax, known as the "backstop", on those provinces that either fall short of the national standard or have not implemented their own system.
Seven of Canada's 13 provinces and territories currently pay the "backstop" rate.
Its current price sits at C$30 (£17.35) per tonne of carbon dioxide released and will rise sharply to C$170 (£98.38) per tonne by 2030.
The Trudeau government has expressed a desire to exceed its emissions reduction commitments under the Paris climate accords.
What did the Supreme Court say?
The top court in the country ruled in a split decision on Thursday that climate change is a threat to the whole country and demands a coordinated national approach.
"Climate change is real. It is caused by greenhouse gas emissions resulting from human activities, and it poses a grave threat to humanity's future," Chief Justice Richard Wagner wrote, on behalf of the majority.
Six justices agreed, with Mr Wagner writing: "Parliament has jurisdiction to enact this law as a matter of national concern."
Shortly after the ruling, federal Environment Minister Jonathan Wilkinson released a statement hailing it as "a win for the millions of Canadians who believe we must build a prosperous economy that fights climate change".
Read original full article
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