Fiscal watchdog to review capandtrade cancellation

Ontario’s Financial Accountability Office is looking at the PC government’s cancellation of the cap-and-trade program.The fiscal watchdog says it will try to determine how much the decision will end up costing the province.The review will not focus on the environmental impacts.Premier Doug Ford promised to scrap cap-and-trade during the campaign.The system aims to lower greenhouse gas emissions by putting caps on the amount of pollution companies in certain industries can emit.If those limits are exceeded, companies must buy allowances at quarterly auctions or from other companies that come in under their limits.It’s not clear if the government will compensate permit holders or how the government will make up for the lost revenue.Meanwhile, Ford announced last week that Ontario would join Saskatchewan’s court challenge of the federal government’s ability to impose a carbon price on provinces. read more