At issue is whether or not the federal government can impose a carbon tax on the province, something it has vowed to do if Saskatchewan itself does not put a price on carbon.
Under its new plan, Environment and Climate Change Canada will tax most industries for roughly 20 per cent of their industry's average carbon emissions, and tax industries at high risk of foreign competition at roughly 10 per cent of their industry's emissions, The Globe first reported on Wednesday.
Draft regulations issued in January indicated a benchmark for when industries would start to pay the carbon tax at 70 per cent of average emissions.
"I would say the government is open to further changes across the board", said Moffet.
The revisions come as big industries face competitive threats from south of the border in the form of corporate tax cuts and protectionist tariffs, and as Ottawa prepares to replace Ontario's cap-and-trade system with its own carbon levy.More news: Barcelona 'agree personal terms' with Vidal ahead of £27m move
But those reductions weren't enough to sway opponents. "What we're seeing here today is a watered down initiative of what is essentially economic poison in the nation of Canada", Moe told BNN Bloomberg in an interview on Wednesday.
After private meetings with stakeholders last week, Ottawa proposed lowering how much big polluters and vulnerable firms or those facing stiff foreign competition will have to pay to emit CO2.
Premier Scott Moe's office released the document on Thursday, the same day Ontario announced it would also be going to court to find out if the federal government's law to impose a carbon tax on the province is constitutional.
"We don't want to drive industry out of our country", McKenna said. "If the federal government continues to pursue a carbon tax to punish Ontario families and make Ontario businesses uncompetitive, we will oppose it".
In late July, Mr. Ford's Progressive Conservatives tabled legislation to kill the cap-and-trade program introduced by the previous Liberal government.More news: China warns of tariffs on imported United States goods worth $60bn
However he said the lighter burden should help industry but doesn't reduce the burden the carbon price will place on individual consumers.
Speaking at Queen's Park, Mr. Phillips said that a carbon tax was only a "cash grab". "We encourage them to take another step and remove this policy, re-engage with the provinces as they committed to on real solutions".
"This is a sensible approach for both the environment and the economy", Mr. Elgie said.
He reiterated that Ottawa's carbon tax policy is flawed and won't work in Canada if it hasn't worked around the world.More news: £20m bid 'nowhere near' asking price for Grealish, says Bruce