Sask. argues carbon tax fight is 'fundamentally' about the nature of federalism

Ottawa eases carbon tax thresholds to help Canada’s big industries compete

Manufacturers of steel, iron, lime, cement and nitrogen fertilizer will now have to pay the carbon price only on emissions that exceed 90 per cent of the average emissions in their sector.

All remaining industrial sectors will face a carbon tax on emissions over 80 per cent of the industry average.

"We don't want to drive industry out of our country", McKenna said.

In one of his first moves as Ontario's premier, Doug Ford announced his province would be getting out of their cap-and-trade system and vowed to go to court, along with Saskatchewan, to fight Ottawa's carbon-tax plan.

"This is what we've been saying for the last two years".

The federal government is relaxing its carbon tax limits on large emitters, after bending to pressure by industry groups concerned about the ability of Canadian producers to compete with their counterparts in the United States, officials confirmed Wednesday.

"It is our position that the federal government has no constitutional authority to second guess provincial decisions with respect to matters within provincial jurisdiction, yet that is exactly what the federal government is attempting to do by imposing a carbon tax only in certain provinces, like Saskatchewan, based on their evaluation of provincial climate change and carbon pricing policies", said Moe in a statement, adding the province will "strongly consider" intervening in Ontario's legal challenge.

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According to Premier Moe, the government has launched their appeal in opposition of the carbon tax. Provinces are also allowed to create their own rules and avoid federal regulation if they accomplish the same goal.

The factum characterizes the federal legislation, called the Greenhouse Gas Pollution Pricing Act, as "unprecedented in Canadian history". "The economy in Saskatchewan is different than the manufacturing economy in Ontario, and is different than economies of Atlantic Canada", Moe said.

However he said the lighter burden should help industry but doesn't reduce the burden the carbon price will place on individual consumers.

Mr. Elgie said that it's unlikely that any firm would be able to drop their emissions by 30 per cent in the next few years, as was originally demanded in the original carbon-tax plan.

"They should just cancel the carbon tax", said Poilievre.

Taxing above 10 to 20 per cent would hurt a company's ability to innovate and find a viable solution, Elgie said. Trudeau has said carbon pricing is essential as other nations move forward on measures to prevent global warming, and that Canada will remain competitive even as the USA loosens environmental protections.

The government released a regulatory framework for carbon emissions in January, which was to take effect in 2019.

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