The Court of Appeal for Ontario considered a reference question regarding the constitutionality of the Greenhouse Gas Pollution Pricing Act, Part 5 of the Budget Implementation Act, 2018, No. 1.
The Act establishes a federal carbon pricing scheme applicable to provinces that have not adopted sufficiently stringent carbon pricing mechanisms.
The majority held that the Act is constitutional under the national concern branch of the Peace, Order, and Good Government power, as establishing minimum national standards to reduce greenhouse gas emissions is a matter of national concern.
The fuel charge and excess emissions charge were found to be valid regulatory charges, not taxes.
Justice Huscroft dissented, arguing that the Act improperly expands federal jurisdiction over greenhouse gas emissions, which are generated by virtually all provincial activities.
