Canada Supreme Court Rules Federal Carbon Tax Is Constitutional - The New York Times - 0 views
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n a decision that marked an important victory for Prime Minister Justin Trudeau’s climate change agenda, Canada’s Supreme Court ruled that the federal government’s imposition of carbon taxes in provinces that oppose them was constitutional.
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“This matter is critical to our response to an existential threat to human life in Canada and around the world,” the court wrote in a 6-to-3 decision. “Climate change is real. It is caused by greenhouse gas emissions resulting from human activities and it poses a grave threat to humanity’s future.”
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The concept of carbon pricing has been widely endorsed by economists, and according to the World Bank, some form of it has been carried out or is in development in 64 countries, either through direct taxes on fossil fuels or through cap-and-trade programs.
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But several people familiar with the forthcoming infrastructure package in the United States said that there were no plans currently to price carbon emissions. Instead, the president plans to greatly raise fuel efficiency standards for cars, forcing automakers toward electric vehicles through regulation, not legislation.
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Court challenges by those three provinces of Mr. Trudeau’s carbon pricing law ultimately led to the Supreme Court’s decision.
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Like Republicans in the United States, conservative premiers in the oil-producing provinces of Alberta and Saskatchewan have long strenuously campaigned against carbon pricing.
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Republicans in Congress remain firmly opposed to a carbon tax and have voted repeatedly and nearly unanimously over the years to bar the government from imposing one.
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While the Supreme Court decision’s detailed the dangers of climate changes to Canada and its coastlines, Arctic region and Indigenous people in particular, none of the three provinces that started the legal challenges dispute its effects.
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In 2019, Mr. Trudeau set a minimum price for carbon. It will become 40 Canadian dollars a metric ton on April 1 and will reach 170 dollars a ton in 2030.
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The federal government has stepped in only when a province, like Ontario under Mr. Ford, refused to price carbon. In those cases, it placed a tax on fuel and set other fees for industrial emissions.
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Jason Kenney, the premier of Alberta, who canceled his province’s program, told reporters that he was disappointed with the decision but declined to say whether his province would come up with a carbon pricing system to replace the federally imposed one.
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The Supreme Court upheld the constitutionality of the law in part because the federal plan kicks in only if provinces do not set up their programs, thus maintaining the shared jurisdiction the two levels of government hold on environmental issues.
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“Addressing climate change requires collective national and international action,” the court wrote. “This is because the harmful effects of GHGs are, by their very nature, not confined by borders.”