Some of the number crunchers have estimated that Ford's decision could cost Ontario about $420 million in federal transfer payments that were targeted for environmental programs.

Other green initiatives expected to soon wind down as a result of axing cap and trade include retrofits to social housing, energy-efficient upgrades for schools and hospitals, and cycling and transit infrastructure, experts say.

Housing Minister Peter Milczyn says the money will come from cap-and-trade auction proceeds, which must be used for green programs.