Provinces not on board with Liberals climate plan to lose funding: McKenna

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OTTAWA — Environment Minister Catherine McKenna says the federal government will withhold money from a $2 billion fund for any province that doesn’t get on board with the Liberals’ climate plan.

Federal officials have been reviewing $420 million slated for Ontario from the low-carbon economy fund after that province’s newly elected Tory government scrapped a cap and trade system and rejected imposing a price on carbon.

McKenna said the federal government is committed to providing money from the fund to those provinces that show a commitment to seriously tackling climate change.

Provinces have until the weekend to submit their climate change plans for federal scrutiny.

A failing grade from federal officials will lead to Ottawa’s imposition of a carbon price on that province.

Saskatchewan released its plan earlier today, which doesn’t include a carbon tax but allows heavy emitters to buy offset credits or pay into a technology fund.

McKenna isn’t saying if that’s enough to pass the Liberals’ climate change litmus test, but says she is pleased the Prairie province did put a price on pollution.

The Canadian Press