Business Needs More Support to Limit Cap and Trade ImpactApril 5, 2017
OCC Calls on Premier Wynne to Prevent Exporting Jobs During the Transition to a Low-Carbon Economy
TORONTO, April 5, 2017: Today the Ontario Chamber of Commerce (OCC) sent an open letter to Premier Kathleen Wynne calling on the government to take action through Budget 2017 to contain the costs of the cap and trade system to better support Ontario’s business community. At a time of low business confidence and increasing competition from the United States, rising input costs for Ontario business risk negatively impacting jobs and investment in the province.
The OCC warns that the province must measure the impact of cap and trade among other input costs to fully understand the cumulative burden facing Ontario’s business community. Because businesses are directly affected by the costs associated with cap and trade, the Government of Ontario must ensure that the revenue and design of the system is allocated and developed in a way that supports Ontario`s business community.
“Increased input costs imposed on the private sector mean that Ontario risks losing out on jobs and investment, and risks an economically and environmentally damaging shift in production to jurisdictions that are not taking action to reduce their greenhouse gas (GHG) emissions,” said Graham Henderson, Chair of the Ontario Chamber of Commerce. “More action must be taken. In all policy decisions, the provincial government must consider how we can prevent exporting jobs while importing pollution.”
The OCC has identified four priority actions that would assist the business community to better navigate the cap and trade system:
- Prioritize the allocation of cap and trade revenue for businesses, in addition to other efforts to offset the cost of cap and trade. Making the process to access resources as quickly as possible will be important, especially for smaller businesses who have little time or money to dedicate to program applications.
- Prioritize innovation funding. Many Ontario businesses have already taken steps to reduce their carbon footprint. Achieving further reductions could be difficult and will often require the implementation of new technologies.
- Create greater post-2020 design certainty. Post-2020 certainty is important for businesses looking to make long-term investments in Ontario.
- Monitor and respond to regional impacts. To ensure the strategic allocation of cap and trade revenues, government should conduct a regional analysis of the impacts.
“It is essential that government begin to publicly evaluate the cumulative impact of current and incoming policies on the overall competitiveness of Ontario business,” concludes Mr. Henderson, calling on the government to monitor input costs across the whole of government. “In particular, emphasis should be placed on how small businesses are being impacted by this cumulative effect.”
The letter is aimed at impacting government policy in Budget 2017, and builds on meetings with senior government officials. These meetings have emphasized the need to ensure Ontario’s businesses remain competitive and confident in the face of a changing economy.
The OCC has engaged in significant advocacy on the cap and trade issue since 2015. This letter builds on earlier communications to government calling on the Ontario Energy Board to disclose cap and trade costs to taxpayers as a line-item on natural gas bills. Last year, the OCC also called on the government to delay the implementation of the cap and trade system until 2018.
Ontario Chamber of Commerce