The word "uncertainty" pops up several times in a new report on the fiscal impact of the cap-and-trade program coming to Ontario in the new year.
The province's financial accoutability officer set out to analyze what impact the Liberal plan would have on Ontario's surplus/deficit.
"The conclusion we reach is we can't provide to members of the assembly an estimate of the annual fiscal impact of the program itself," chief financial analyst Peter Harrison told reporters.
The cap-and-trade program will force polluters who go over a certain cap in emissions to buy credits, or allowances, at auction. The Liberal government has said the money raised will go towards green projects, including building transit.
The FAO says there is uncertainty surrounding the government's estimate of $1.9-billion revenue each year.
Harrison says the market is volatile. In California and Quebec, two auctions earlier this year sold only 11 and 35 per cent of allowances for sale, while an auction earlier this week sold 80 per cent. The volatility makes it difficult to predict demand, which affects prices.
The report also says that the government has so far provided limited details on expenses, where the money raised will go.
Asked whether all the uncertainty should raise red flags, Harrison said the FAO does not make policy recommendations.
"I don't think it's our role to be worried," temporary financial officer David Wake told reporters.
WATCH: NDP environment critic Peter Tabuns reacts to the FAO report
NDP environment critic Peter Tabuns says FAO report on cap and trade raises questions pic.twitter.com/toexs537r9
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