Prime Minister Justin Trudeau has announced Canada-wide carbon pollution pricing as part of a national strategy to reduce emissions. Under the new plan, all Canadian jurisdictions will have carbon pricing in place by 2018.
Federal government will start pricing at a minimum of $10 per tonne in 2018, and say that will rise by $10 a year to reach $50 per tonne in 2022.
Provinces and territories will have flexibility in choosing how to implement the carbon pricing, with the option to either put a direct price on carbon pollution, or adopt a “cap-and-trade” system.
This would mean reducing the number of greenhouse gas emission permits the province or territory makes available to businesses. The number of available pollution permits would decrease annually, based on emission cuts through to 2022 (equal or greater to what would be achieved by a direct price) and also based on a 2030 target equal or greater to Canada’s, according to Ottawa.
Provincial Environment Minister Mary Polak says in B.C.’s case, the carbon tax would roll over.
“If we were to move with the schedule that Canada is proposing, then you would not see a rise in British Columbia’s carbon price until the year 2021.”
Today, we introduce our plan for pricing carbon pollution to build a clean economy and protect Canadians’ health.— Justin Trudeau (@JustinTrudeau) October 3, 2016
The plan:— Justin Trudeau (@JustinTrudeau) October 3, 2016
📍Pricing carbon pollution
✅Stronger middle class
It’s a mixed reaction from the provinces to Trudeau’s national strategy to reduce emissions.
B.C. Environment Minister Mary Polak says it means other provinces will catch up with B.C., but Saskatchewan Premier Brad Wall says it will cost the average family $1,250 per year.
Meanwhile, the Pembina Institute’s Josha MacNab says the plan would allow the provinces to find their own methods of collecting the tax.
“They will return that to their own economies and then they have the choice and the flexibility to decide where that money is going to be spent.”
B.C.’s $30 per tonne carbon tax stays the same until 2018, the same year the federal carbon price kicks in.