The Manitoba government has lost a two-year-long court battle against the federal government's carbon pricing plan.
A Federal Court judge has rejected Manitoba's argument that Ottawa should not have imposed an escalating minimum price on carbon, because the province was planning its own emissions plan that could have been just as effective.
"The inclusion of Manitoba on the list was consistent with the statutory purpose and the guideline of ensuring that emissions pricing is applied broadly in Canada." Ottawa brought in a "backstop" carbon price on provinces that did not develop a carbon-pricing or cap-and-trade plan that met or exceeded the federal one. Saskatchewan, Alberta and Ontario argued the federal government was interfering in provincial jurisdiction. The Supreme Court of Canada ruled last March that Ottawa was within its constitutional authority.
Pallister said Manitoba's emissions plan, which included wetlands improvements and subsidies for fuel efficiency in the trucking industry, could meet or exceed federal targets without imposing a high carbon tax.
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