Doug Ford says his first order of business as Ontario premier is cancelling cap and trade

TORONTO – Doug Ford says his first act as Ontario premier will be to scrap the province’s cap-and-trade system and challenge federal rules on carbon pricing.

The premier-designate says he will give notice of the province’s withdrawal from the linked carbon pricing market with Quebec and California.

Ford says the government will provide clear rules for an “orderly wind down” of the system.

READ MORE: Ontario’s carbon pricing future uncertain between cap and trade and carbon tax

He says he will also instruct the new attorney general to begin a challenge of the federal government’s rules requiring provinces to have carbon pricing in place.

Ford says eliminating the cap-and-trade system will help him deliver on a campaign promise to cut gasoline prices by 10 cents per litre.

The cap-and-trade system aims to lower greenhouse gas emissions by putting caps on the amount of pollution companies in certain industries can emit.

READ MORE: Conservatives set to force all-night voting over Liberal refusal to reveal carbon tax cost

If they exceed those limits they must buy allowances at quarterly auctions or from other companies that come in under their limits.
Ontario has made close to $3 billion in a series of cap-and-trade auctions since the system was introduced by the Liberals last year.