The Alberta Court of Appeal has ruled the federal carbon tax to be unconstitutional.
On Monday afternoon, the court of appeal's judges ruled in a 4-1 decision that the carbon tax steps on provincial jurisdiction.
The court rejected the federal government’s argument that greenhouse gasses and climate change are issues of national concern. In a 269-page decision, Justices Catherine Fraser, Jack Watson and Elizabeth Hughes said the division of powers in Canada remains “key to our federal state.”
“It is part of the fabric of Canada itself. The federal and provincial governments are co-equals, each level of government being supreme within its sphere. The federal government is not the parent; and the provincial governments are not its children.”
The ruling called the the Greenhouse Gas Pollution Pricing Act "a constitutional Trojan Horse,” noting there was no limit to the federal government’s power within the legislation.
“Conspicuous for its breadth, the act allows the federal government to intrude further into more and different aspects of lawful daily life, both personal and business,” the ruling read.
"Nor is there anything in the act limiting what the federal government can choose to levy in the future both on people and industry. The minimums of today are not the maximums of tomorrow."
The provincial UCP party hailed the ruling as a victory and Premier Jason Kenney said the carbon tax is now illegal.
"We disagree with Ottawa that a one-size-fits-all consumer tax that punishes families for heating their homes or driving to work is the best way to reduce emissions. We categorically reject that," Kenney said.
"We agree with the need to reduce emissions across our economy and our energy sector, but we must be allowed to do it our own way. We will not tolerate Ottawa deciding the future of Alberta's economy."
Albertans have been paying the federal carbon tax since Jan. 1. Now, Kenney is calling upon the federal government to end that tax.
“We expect the government of Canada to comply with the order of the court today, and to remove the federal carbon tax on Albertans."
The federal carbon tax came into effect because the UCP government repealed the provincial carbon tax put in place by the former NDP government.
Last year, courts in Saskatchewan and Ontario issued rulings that the carbon tax is constitutional. The Alberta Court of Appeal is the first court to rule against the legislation.
The Supreme Court of Canada will hear the case in March.
