Ontario Premier Dalton McGuinty outlined his proposed Green Energy Act Saturday, which he says will remove barriers to renewable energy projects and keep the province in line with the United Sates if it implements a cap-and-trade system for carbon emissions.

In a speech to caucus members and regional delegates in Niagara Falls, McGuinty warned that Ontario companies cannot rely on a low Canadian dollar and low energy costs to turn a profit.

McGuinty said that such a system is unsustainable, citing Canada's "volatile" dollar and the fact that energy prices will likely rise, partly due to carbon pricing.

He warned of new environmental policies from U.S. President Barack Obama, who has discussed a cap-and-trade system for carbon emissions. Such a plan would hurt Ontario if it continues to rely heavily on coal-fired electricity, McGuinty said.

"Carbon pricing is coming to North America just as surely as night follows day," McGuinty said. "It will likely be driven by President Obama through a cap-and-trade program. Carbon pricing will crate challenges for some and real opportunity for others who are prepared."

According to McGuinty, the proposed legislation, which he is set to table later this month, would make it easier to get new wind turbines, solar panels and biofuel plants online and on the grid while protecting the environment.

The bill will also:

  • Support and expand economic investment in green technologies
  • Expand the province's use of clean and renewable energy sources, such as wind, solar, hydro, biomass and biogas
  • Develop a smart electricity grid that can better adapt to renewable energy projects

The legislation will also speed up the process to apply to local and regional governments to get renewable energy projects off the ground.

"Our world is changing," McGuinty said. "And our businesses are going to have to be at their very best if they want to compete and win.

Citing "tremendous opportunities to be had in a green economy," McGuinty repeated earlier claims that the Act will create 50,000 more jobs in the province over the next three years.

During his speech, McGuinty also warned that as Ontario pulls itself out of the current economic downturn, the province would have to run a deficit while cutting funding to new projects.

"Our government's highest priority is to help Ontarians through this recession and build a strong and more competitive economy," McGuinty said. "We have to do both. We have to grapple with the present and build for the future."

The premier's speech came on the heels of figures released Friday that indicated the province lost 71,000 jobs in January.