The Government of Ontario’s decision to develop and implement a province-wide cap and trade system comes at an important time in the global climate change landscape.
Today, the Ontario Chamber of Commerce (OCC) released its report, Clean Profits, which presents the business perspective on Ontario’s proposed cap and trade system.
Ontario’s business community understands the need to address climate change. If designed correctly, the government’s proposed cap and trade system could present some significant opportunities for Ontario.
At the same time, businesses in the province are facing rising costs on a number of fronts and they worry that the system could further contribute to this cumulative burden.
It is also clear that Ontario’s employer community is uncertain how the cap and trade system will impact them, as few details are known. This has left the provincial government susceptible to speculation about what the system might look like and how it will impact Ontario’s economy.
The OCC has worked with its members and the broader business community, many of whom have practical experience in other jurisdictions that currently employ carbon pricing policies, to identify potential challenges with Ontario’s proposed cap and trade system. In this report, we have translated these into a set of recommendations for government.
Ontario businesses want to be partners in helping the Province meet its climate change objectives. Adopting these recommendations would be a good step towards designing a system that will balance environmental ambitions while fostering the conditions necessary for economic growth and prosperity.