Summary#

Bill 32, the Carbon Budget Accountability Act, 2021, would create a new Ontario law; it does not amend an existing Act. Its stated goal is to keep Ontario’s total net greenhouse-gas emissions consistent with limiting global warming to 1.5°C, but the bill does not guarantee that result.

• The Premier and the Minister of the Environment, Conservation and Parks would have to ensure Ontario stays within a cumulative limit of 1,630 megatonnes of net emissions from 2023 onward. The bill also sets cumulative limits for 2023–2029, 2030–2034, 2035–2039 and 2040–2044, and a limit of zero net emissions in 2045 and each year after.
• In calculating net emissions, carbon sequestration (removing greenhouse gases from the atmosphere) could offset no more than 10% of actual emissions. It would count only if it removes greenhouse gas for at least 100 years.
• The Minister would have to report each year on the previous year’s emissions and the government policies it will implement to stay within the applicable budget. The report must be published and laid before the Assembly by March 31.
• If the report deadline is missed, both the Minister and the Premier would have to personally pay a penalty equal to 10% of their respective annual salaries into the Consolidated Revenue Fund within 30 days.
• The Auditor General would have to review the latest published report before a general election and release the results, and issue an annual written report on compliance with the Act.

What it means for you#

• Premier and environment minister: They would have a legal duty to ensure Ontario’s emissions stay within the limits. The bill does not set out specific measures they must use to do this.
• Government: The Minister would have to prepare and publish annual reports. Missing the deadline would trigger personal payments by both the Minister and the Premier.
• Businesses and individuals: The bill does not directly set emissions limits for particular businesses or people, or create new taxes, fees, permits or penalties for them. Later government policies could affect them, but this bill does not specify those policies.
• Public: The annual reports and Auditor General’s reviews would provide information about emissions and compliance. The bill does not create a public application or complaint process.

Money#

No publicly available information on the bill’s estimated cost.

• The bill requires annual reports and Auditor General reviews, but gives no estimate for the staff time or other costs involved.
• A missed reporting deadline would require personal payments by the Premier and Minister. The bill does not state the dollar amounts; they depend on their annual salaries.
• The bill does not authorize a specific spending amount or create a tax, fee or benefit.

What is unclear#

• The bill does not specify which policies the government must use to meet the limits, or how progress would be enforced if emissions exceed a limit.
• It does not explain how a multi-year cumulative budget would be compared with emissions from one previous calendar year in the annual report.
• “Carbon sequestration” is not defined in the bill. The bill also allows regulations to prescribe additional greenhouse gases, but does not say which might be added.
• The bill does not set out how the Auditor General would assess whether a report is “reasonable,” beyond applying parts of the Auditor General Act with necessary changes.
• The supplied material does not state the bill’s current status. It would take effect only if it receives Royal Assent.

Case for#

• The bill appears intended to make Ontario’s total emissions limits a legal duty, rather than only a stated goal.
• Requiring yearly reports could make it easier for the Assembly and public to compare emissions with the limits and see what policies the government plans to use.
• The Auditor General’s reviews could provide an independent check on the government’s reporting.
• The long-term limits and restrictions on offsets could reduce the risk that temporary or short-lived carbon removal is counted toward the budget.

Case against#

• The bill sets province-wide limits but does not specify the policies or enforcement steps needed if Ontario is not on track to meet them.
• The annual report must describe planned policies, but the bill does not require specific policies, timelines or results.
• The bill does not explain how its multi-year limits would be measured against yearly emissions in the required report.
• The personal salary penalty applies to missing the report deadline, not to exceeding an emissions limit.