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GHG Emission Trading and the Constitution. Stewart Elgie University of Ottawa, Faculty of Law, and Chair, Sustainable Prosperity. Overview of Presentation. Main mechanisms to put a price on carbon Emission trading / payments (this talk) Taxes and other fees (next talk)
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GHG Emission Trading and the Constitution Stewart Elgie University of Ottawa, Faculty of Law, and Chair, SustainableProsperity
Overview of Presentation • Main mechanisms to put a price on carbon • Emission trading / payments (this talk) • Taxes and other fees (next talk) • Federal powers • Provincial powers • Upshot
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Fed Powers - Overview * S. Elgie, “Kyoto, the Constitution and Carbon Trading”, 13:1 Review of Constitutional Studies 1 (2008)
Evolving Judicial Approaches • Courts have fleshed out const-env powers over past 30 years, balancing: • Need for national standards, and • Protecting provincial jurisdiction • Two main approaches to constrain fed power • Limit breadth of subjects addressed (POGG) • Limit depth of tools used (Criminal)
POGG Residual power ‘National Concern’ test: • Distinct and indivisible (likely met) • ‘Provincial inability’ (likely met) • Scale of impact on prov’l jurisdiction (?) • Issue: Does test allow greater prov’l impacts to address inherently far-reaching problems? • Scope: Could include emission trading, but can’t reach too far into industrial practices
Criminal Power Test: • Valid criminal purpose (likely met) • Prohibitory approach (?) • OK to have some regulatory elements • Controls on GHG emissions likely OK • Is emission trading too ‘regulatory’? • This is current federal approach - risky
Trade & Commerce • Combine with Criminal power (for trading) Two branches: • Interprov’l / internat’l trade • General trade & commerce • Key: “problem cannot be effectively regulated unless it is regulated nationally” • Good chance of success
Treaty Implementing • Power untested since 1937 • Strong arguments that power exists • Const’n said feds can implement UK treaties • Canada has weakest fed treaty powers • Impairs international affairs • Possible boundaries on power? • treaties re: ‘internat’l’ matters, not ‘domestic’ • powers strictly limited o/s trad’l fed areas • If power exists, includes e-trading
Provincial E-Trading Power • Prov power to regulate GHG emissions • show provincial purpose? (global impact) • likely OK, but uncertain • Prov power over extra-prov e-trading • provs can’t regulate extra-prov activities • show provincial purpose? • very questionable • might help if parallel, multi-prov approach
Summary • Feds likely can regulate e-trading • raises significant new const’l questions • Provincial power more questionable • Fed & prov trading systems • 2 parallel systems likely ok – but why? • coordinated systems could work • e.g. provs implement, set tougher limits • tough if feds use intensity targets • Both levels can use spending and incentives