Clearly, the Ontario government, with its commitment to move Ontario out of the cap-and-trade system, has moved from threat to action. Everything is now in the legislative stage and it goes without saying that some players will be losing greatly in the process (fuel distributors among others). The amount of compensation is not yet known, but it is likely to be costly for the government and possibly Ontario taxpayers (precisely those who, according to the Ford administration, should benefit from this new measure).
Of course, such measure directly affects the environment, but it also affects the business world as well, because it adds a layer of uncertainty to investors by presenting an unstable system, less conducive to investment.
Finally, the Ontario government, with Saskatchewan, has also engaged in a lawsuit with the federal government (regarding Trudeau’s carbon tax), and is now facing law suits by emitters and possibly stakeholders. The unfolding of these legal battles will be interesting to watch.
In short, this is the beginning of a stormy mandate ahead of the Conservatives in Ontario.
Read more details in McCarthy Tetrault‘s article (here).