Doug Ford’s Conservatives did break the law when they did away with the cap-and-trade system last year, but the same court ruling won’t force them to bring it back.
Two of three judges on a Divisional Court panel say the government violated the law when it did not consult the public before scrapping the program last year.
The system aimed to lower greenhouse gas emissions by putting limits on the amount of pollution companies in certain industries could emit.
The Ford PCs claimed it was expensive, ineffective and killed jobs and replaced it with its own environmental plan that does not include a price on emissions.
That prompted Ottawa to slap a carbon tax on Ontario, which the province wants to challenge before the Supreme Court.