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Doug Ford’s new climate plan makes the same fundamental mistake the carbon tax did

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The ongoing demonstrations by France’s gilets jaunes, or yellow vests, against climate-inspired fuel taxes offer Ontario Premier Doug Ford yet another reason to congratulate himself on repealing the provincial carbon tax.

Less reassuring however is that he plans instead to introduce a measure similar to the Australian “Emissions Reduction Fund” (ERF). After the Australian government also cancelled its carbon tax in 2014, the ERF was introduced as a sop to the leftists within the Australian coalition conservative parties. It provides funding for a reverse auction where, instead of taxing all emissions, (with the revenues theoretically being used to compensate those paying the taxes), the government invites bids from firms for the abatement measures they will undertake.

Bite the bullet and abandon the pretense of abiding by the climate agreement

Australia’s ERF is part of a suite of measures in place, including:

• Renewable energy subsidies that cost about $3 billion a year (all figures in Australian dollars);

• Direct federal investment of perhaps $500 million a year plus a similar amount for various state and territory programs;

• Regulations on light bulbs,........

© Financial Post