By Alexandra Sadvari, Liane Langstaff

Until recently, few people in Ontario paid much attention to the “Federal Backstop,” the federal carbon pricing system for provinces without a carbon tax or cap and trade program. However, when the provincial government ended Ontario’s cap and trade program by repealing the cap and trade regulation effective July 3, 2018, Ontario was suddenly left open to the application of the Federal Backstop.

While the Ontario government is currently challenging the constitutional authority of the federal government to impose the Federal Backstop on Ontario, many Ontario corporations are preparing to comply with the federal regime.