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Saskatchewan et al. v. Canada re Greenhouse Gas Pollution Pricing Act - judgment

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In April of 2018, the Province of Saskatchewan filed a reference case with the Court of Appeal for Saskatchewan, asking whether the Greenhouse Gas Pollution Pricing Act (GGPPA) was an unconstitutional intrusion into provincial jurisdiction. The GGPPA was introduced into Parliament on March 28, 2018 as Part 5 of Bill C-74 and became law on June 21, 2018. It established a federal price on greenhouse gas (GHG) emissions, effective as of January 2019, in any province or territory that has not implemented a compliant carbon pricing regime or any province or territory that requests it. The Paris Agreement was among the laws discussed in the preamble of the GGPPA in regard to the need for a carbon pricing mechanism. On May 3, 2019, the Court of Appeal for Saskatchewan ruled that the (GGPPA) is constitutional in whole or in part by a 3-2 majority.

The Court of Appeal rejected Canada’s broader argument that Parliament has jurisdiction over “the cumulative dimensions of GHG emissions” under the national concern branch of its “Peace, Order, and good Government” [POGG] power. The Court found this approach would exceed the constitutional authority of Parliament and intrude too far into areas of Provincial authority and limit Provincial efforts to deal with GHG emissions. However, the Court did rule that Parliament has more narrow authority under the POGG to establish “minimum national standards of price stringency for GHG emissions” because this authority “has the singleness, distinctiveness and indivisibility required by the law.” Accordingly, the Court ruled that the GGPPA is constitutionally valid under this more narrow POGG authority.

The Attorney General for Saskatchewan appealed the decision to the Supreme Court of Canada. In similar cases, the Court of Appeal of Ontario had also ruled the Act constitutional, while the Court of Appeal of Alberta had ruled it unconstitutional. Both were also appealed and the three cases were heard together before the Supreme Court. 

On March 25, 2021, the Supreme Court rejected Saskatchewan and Ontario's appeals and upheld the GGPPA as constitutional in a 6-3 decision. The Court upheld the Act under the POGG power of the constitution, reasoning that climate change was of sufficient national concern to warrant federal jurisdiction, provinces had a constitutional inability to set national GHG emission reduction standards, and the Act's impact on provincial jurisdiction is qualified and limited. The Court wrote that "Canada has adduced evidence that clearly shows that establishing minimum national standards of GHG price stringency to reduce GHG emissions is of sufficient concern to Canada as a whole that it warrants consideration in accordance with the national concern doctrine." Provinces were incapable of addressing the problem in the same way because they could not set a national minimum GHG price, and "a failure to include one province in the scheme would jeopardize its success in the rest of Canada." Further, the Court found that the GGPPA had a limited effect on provincial jurisdiction because it was limited to a narrow regulatory mechanism of pricing, not regulation of all aspects of GHG emissions, and because it only acts as a backstop if provincial pricing is found insufficient. 

Saskatchewan et al. v. Canada re Greenhouse Gas Pollution Pricing Act

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Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

Groups  of people who are adversely affected by climate change or the response to it

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Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

The management and allocation of funds, assets and investments to meet various objectives

Any compulsory, unrequited payment to the government levied on corporations or individuals. This can be for environmental reasons, such as introducing a Carbon tax to set a price that emitters must pay for the greenhouse gases they emit.

Terrestrial means "of the earth" and relates to the risks to ecological system that includes all living organisms and their interactions within land-based environments, such as forests, grasslands, and deserts.

This sector includes firms and individuals offering specialised expertise in fields such as law, accounting, consulting, science and engineering.

Activities involving the catching, processing, and selling of fish for food, recreation, and industry.

This sector provides medical services, manufactures medical equipment, and develops pharmaceuticals to maintain and improve health.

Activities of businesses and institutions that provide financial services and products to individuals and organisations.

Activities that provide lodging, food, and entertainment services to guests, including hotels, restaurants, and resorts.

Financial support to help individuals manage the effects of unexpected events, securing their livelihoods and increasing the resilience of people and businesses to the changing climate. It’s especially vital in developing regions where everyday risks, climate-related weather extremes, or crop failures can push people into poverty. Without insurance, people may have to resort to selling assets or cutting consumption to cope with losses.

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Oil is a combustible liquid fossil fuel composed mainly of hydrocarbons, occurring as crude oil and refined into petroleum products such as petrol, diesel and kerosene.

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Activities that involve planning, designing and building infrastructure, residential, and commercial structures.

Production of electricity and heat from solar irradiation.

Hot temperature extremes are daily maximum temperatures  that were exceeded on average once in a decade or once in 50 years, and includes heatwaves.

Jobs that contribute to preserving or restoring the environment. We include jobs which require a high amount of green skills or which spend much of their time on green activities, as well as jobs transforming polluting industries.

woman and genders outside of the gender binary

Codes and standards are regulatory instruments that specify minimum standards to protect health and safety. This ranges from performance standards, which prescribe outcomes while allowing flexibility to achieve compliance, to the more prescriptive approach of technology-specific standards.

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This sector involves activities to move goods and people, alongside the storage of products.

Fossil gas, commonly known as natural gas, is a fossil fuel consisting chiefly of methane with smaller amounts of other hydrocarbons and trace gases, found in underground deposits.

A long-lived, colourless gas, chiefly emitted from fossil fuel combustion, deforestation and cement production.

Social and cultural groups that share collective ancestral ties to the lands and natural resources where they live, occupy or from which they have been displaced

People with different national or cultural traditions from the dominant population

Tradable permits are market-based tools that grant permission for specific activities, frequently used to regulate emissions. These permits can be issued within a trading system to manage environmental impacts.

The activities of industries that transforms raw materials into finished goods through industrial processes.

The activities of industries involved in the production, distribution, and sale of energy, including electricity, gas, and renewables.

This sector creates and distributes information and entertainment through television, radio, print, and digital platforms.

The release of heat-trapping gases, primarily from human activities such as burning fossil fuels, agriculture and industry.

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Risks to the ecosystem health of the marine environment, including ocean warming, ocean acidification, and ocean deoxygenation, harming biodiversity, species health, ecosystem services, and coastal community livelihoods.

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Climate change can have a range of impacts on technological system. Extreme weather events can cause infrastructure failures like power outages or damage to roads and bridges, as well as the impacts from waste following natural disasters. Human activities also cause technological impacts, such as the risks posed by oil spillage and leaks.

A target to reduce the prevalence of a greenhouse gas over a specific time frame

Activities that involve the cultivation of crops and raising of livestock for food, fibre, and other products essential for human life and industry.

Coal is a combustible sedimentary rock formed from carbonised plant matter, rich in carbon and hydrocarbons, and occurring in several main types including hard coal and brown coal.

Either money or something of monetary value is transferred between two or more organisations, people or countries.

A company that is owned wholly or partially by the state, typically operating in key sectors.

A loan is a policy instrument where funds are provided to a borrower with the expectation of repaying the principal plus interest.

A potent, short-lived greehouse gas, largely released from livestock, fossil fuel extraction and waste management.

Activities of government agencies and institutions that provide public services, enforce laws and manage public resources.

This sector involves activities that impart knowledge and skills to individuals, including formal schooling, vocational training and educational support.

Extreme weather refers to events where a weather variable exceeds (or falls below) a threshold. Meaning it is significantly different from the average or usual weather pattern.

Saskatchewan et al. v. Canada re Greenhouse Gas Pollution Pricing Act - judgment

Target

Policy instrument

Risk

Impacted group

Just transition

Renewable energy

Fossil fuel

Greenhouse gas

Economic sector

Adaptation/resilience

Finance