Federal Court rejects Manitoba’s argument against carbon price backstop

The Manitoba government has lost a court battle against the federal government’s price on carbon.

A Federal Court judge has rejected Manitoba’s claim that Ottawa did not act properly in imposing a minimum price on carbon because Manitoba was planning its own lower price.

Justice Richard Mosley says the federal government’s actions were consistent with the purpose of the greenhouse gas reduction law and with ensuring that emissions pricing is applied broadly in Canada.

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The judge also says Manitoba was wrong in stating that its plan to reduce emissions was as effective as the federal plan.

The Supreme Court of Canada ruled in March that Ottawa has the right to impose carbon pricing on provinces, but Manitoba persisted with its case by arguing it had an effective carbon reduction plan.

Former Manitoba premier Brian Pallister planned to have a flat $25 per tonne price on carbon, unlike the escalating federal one, but withdrew the plan when Ottawa imposed its own.

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