Canada's top court upholds pillar of Trudeau's plan to fight climate change (updated)

TAG Oil

25/03/2021 14:19

(Updates with ruling, adds Trudeau file pictures available)
    By Nia Williams and Steve Scherer
    CALGARY, Alberta/OTTAWA, March 25 (Reuters) - Canada's
Supreme Court ruled in favour of the federal government's carbon
pricing policy on Thursday, upholding a central pillar of Prime
Minister Justin's Trudeau's climate plan.
    Noting that climate change is a threat to the country as a
whole, the country's top court upheld the legality of the
Greenhouse Gas Pollution Pricing Act, which had been challenged
by the provinces of Alberta, Saskatchewan and Ontario.
    "Parliament has jurisdiction to enact this law as a matter
of national concern," Chief Justice Richard Wagner wrote in the
ruling.   
    Carbon pricing, often called a carbon tax by opponents, is
the lynchpin of Canada's plan to ultimately reach net-zero
emissions by 2050. Ottawa will steadily ramp up the price of
carbon to C$170 ($135.08) a ton by 2030, from C$30 a ton
currently.
    Under the carbon pricing act, Ottawa can impose a federal
levy on provinces that do not have an adequate carbon pricing
system of their own. Opposing provinces argued this infringed on
their jurisdiction, but the Supreme Court ruled federal
intervention was justified.
    "All parties to this proceeding agree that climate change is
an existential challenge. It is a threat of the highest order to
the country, and indeed to the world," Wagner wrote.
    The ruling was backed by six members of the nine-member
court, with three dissenting opinions. 
    Canada is the fourth-largest oil producer in the world and
the fifth-largest carbon emitter on a per capita basis.
    The country needs to cut emissions by 30% below 2005 levels
by 2030 to fulfil its international climate commitments, which
would involve slashing annual emissions to 511 megatons,
compared with 729 megatons in 2018.
    The Liberal government unveiled a strengthened climate plan
last year aimed at reducing emissions to 503 megatons.
 urn:newsml:reuters.com:*:nL1N2IR1RR
    "Carbon pricing is the central defining feature of their
climate strategy," said Sarah Petrevan, policy director at think
tank Clean Energy Canada.

 ($1 = 1.2585 Canadian dollars)

 (Reporting by Nia Williams; Editing by Hugh Lawson and Nick
Zieminski)
 ((nia.williams@thomsonreuters.com; +1 403 531 1624; Reuters
Messaging: nia.williams.thomsonreuters.com@reuters.net))