Saskatchewan court rules federal carbon tax constitutional in first of several legal challenges

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Saskatchewan court rules federal carbon tax constitutional in first of several legal challenges
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In a 3-2 ruling that is expected to be appealed to the Supreme Court of Canada, Saskatchewan’s Appeal Court concluded there is nothing unconstitutional about the federal carbon-tax regime

Saskatchewan’s highest court has concluded the federal government’s carbon tax is constitutional, handing Prime Minister Justin Trudeau an early victory as his climate plan faces significant legal opposition only months before a federal election.

The decision found that the federal plan allows for significant provincial action on carbon emissions and respects Canada’s Constitution. The majority also found that the carbon tax, in a constitutional sense, is not a tax but a regulatory charge on emissions. Saskatchewan Premier Scott Moe’s government tested the federal law in that province’s Court of Appeal in February, arguing that the carbon tax is an intrusion into provincial jurisdiction and upsets Canada’s constitutional order. Mr. Moe stressed that climate change itself was not on trial.

The two dissenting judges argued that the “peace, order and good government” provision should be read more narrowly. “Notwithstanding the existential threat of climate change, federalism in Canada means that all governments of Canada must bring all law-making power to bear on the issue of climate change, but in a way that respects the division of powers,” the minority argued.

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