Manitoba won't appeal recent court decision on federal carbon tax challenge

The Manitoba government will not appeal a recent federal court decision on its challenge of the federal carbon pricing plan.

Last month, the province lost a nearly two-year court battle against the national plan after a Federal Court judge rejected its argument that the federal government had no right to impose a carbon pricing plan because the province had its own plan.

In his written decision Justice Richard Mosely pointed out that Manitoba's plan was not enacted at the time of the court challenge and questioned the effectiveness of the plan. 

On Wednesday, Premier Heather Stefanson said in a press release that the provincial government doesn't intend to challenge Mosely's decision, saying she wants to have a more "collaborative approach" with the federal government on climate change issues. 

Stefanson said Manitoba is developing a new policy and will negotiate with Ottawa in the months ahead.

Former premier Brian Pallister planned a flat $25-per-tonne price on carbon but withdrew it when the federal government said that wasn't enough and brought in an escalating one.

The Supreme Court ruled that the federal Liberal government's carbon pricing regime was constitutional in March but the Pallister government decided to push ahead with its own court challenge. 

Opposition NDP Leader Wab Kinew says Manitoba should come up with its own plan so that it can control where the money it raises can be spent.