Homeowners in Ontario face an increase of about five dollars each month on their home heating bills thanks to newly passed cap-and-trade legislation.
The system, meant to combat climate change by giving industries specific pollution limits, will also add about 4.3 cents to the price of a litre of gasoline at the pumps.
The idea of putting a price on carbon to reduce greenhouse gas emissions is supported by the Opposition P-C’s, but they’d prefer the system be neutral. They’re reportedly concerned the Liberals will use the money generated by cap and trade to balance the books.
Early next year, the provincial government plans to hold its first auction of pollution credits.
It expects to raise $1.9 billion dollars annually, and the Liberals claim the money will be used to help move to a low-carbon economy.
Under cap and trade, industries can sell their emission allowances to other companies if they come in below their annual limit, or buy credits if they exceed it.
Earlier this week, the Ontario Chamber of Commerce urged the Liberals to delay implementation of cap and trade for one year, arguing key questions remain unanswered.
Chamber CEO Allan O’Dette believes businesses are still looking for details on how revenue generated by cap and trade will be invested and administered.