As politicians argue about climate change and carbon pricing, one undeniable fact is getting lost: the world is moving to a cleaner, smarter, low carbon economy.

That is not a left wing or right wing issue. It is an environmental and economic reality. One that requires leadership from an Ontario government of any stripe — through smart policies, incentives and (yes) carbon pricing, to help Ontarians prepare for and prosper in a changing world.

Look around, you can see the change happening. High efficiency buildings with next generation lighting and energy management systems; electric cars on roads lined with bike paths; solar panels on rooftops and farmers’ fields; industries adopting state-of-the art clean technologies.

These once-rare things are increasingly common, and soon they will be the norm. Clean energy now draws more investment than fossil fuel energy worldwide. The sale of gas-powered cars has been banned by 2040 (or sooner) in many countries, including Britain, China, India and France.

This shift to a clean economy is being driven, in large part, by the concerted efforts of governments around the world (spurred by the Paris Climate accord) to bring in low-carbon policies and incentives. This has helped to unleash private initiative and accelerate the pace of clean technology development — reducing the costs of solar panels and electric car batteries by 80 per cent in the past seven years, for example.

Ontario has been among the global front-runners in this economic shift. Like other leading governments, it has used a mix of public policies and incentives to help accelerate the move to energy efficient buildings, smarter transportation, cleaner industries, and greener power. For example, by phasing out coal-based power, the province massively reduced greenhouse gas emissions and harmful air pollution — saving thousands of lives and billions of dollars in health costs.

Opposing View: Carbon taxes do not curb emissions or help battle climate change

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The centrepiece of Ontario’s efforts has been a cap-and-trade system, linked to California and Quebec. This system puts a price on carbon, to reflect the real environmental costs — an approach that is widely supported by economists as well as business and environmental leaders, because it is the most cost-effective way to reduce emissions, stimulate innovation, and drive energy efficiency.

That is why carbon pricing is now used in seven of world’s 10 largest economies. It isn’t a left wing or right wing idea. In fact, Canada’s first two pricing systems were brought in by right wing governments in Alberta and B.C. And it is championed by conservative leaders around the world, such as Angela Merkel, Arnold Schwarzenegger, and Preston Manning. It reduces emissions at less cost than any other type of policy.

It is no coincidence that the four provinces that have priced carbon had the strongest GDP growth in Canada last year (including Ontario). In fact, since B.C. brought in its carbon tax in 2008, it has reduced emissions by 7 per cent more than the rest of Canada (for sectors it covers), while its GDP growth has outpaced the rest of Canada’s by two-to-one.

Similarly, in Europe, firms covered by its cap-and-trade system have substantially outperformed their peers on both emissions reduction and economic performance over the past decade.

Ontario is still too early in its cap-and-trade experience to evaluate the exact impacts. But on the whole its mix of low-carbon policies, pricing and incentives has worked pretty well. Since 2005, the province has reduced its greenhouse gas emissions by 22 per cent, while its GDP has grown by 17 per cent.

These results are impressive, but Ontario can’t rest on its laurels.

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The shift to a cleaner, more innovative economy is underway around the world. Canadian governments have a history of taking far-sighted action to help us prepare for these kinds of major global economic changes — like the shift to free trade in the late 1980s, where Brian Mulroney’s Conservatives led the way (and also signed the first global Climate Change Convention).

We face a similar challenge, and opportunity, now. And we need the same kind of policy leadership from Ontario’s next government — whoever it is — to help our businesses, workers and families prepare for and prosper in this time of global economic and environmental change.

There is no more important issue for the province’s future in this election.

Stewart Elgie is a professor of law and economics at the University of Ottawa.

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