Carbon tax: further changes to come, warns the federal

Taxe sur le carbone: d’autres changements à venir, prévient le fédéral

Photo: Charlie Riedel Associated Press
Ottawa has calculated that his plan for carbon pricing will lead to a decrease of the annual emissions of Canada’s GHG of 80 to 90 megatons.

The softening of the carbon tax announced by Ottawa this week is perhaps not the last. The officials of the ministry of Environment and climate Change said Thursday that the federal model must still go through a third and final phase of the analysis before taking its final form in the fall. The threshold at which large industrial emitters will have to pay a carbon tax could still be enhanced.

“It is not the final proposal. The government is open to additional changes, ” stated during a technical briefing John Moffet, the assistant deputy minister of the department for the protection of the environment to the ministry.

For the implementation of his plan, Ottawa has calculated the average emissions of greenhouse gas (GHG) emissions per unit of production for each industrial sector (cement works, chemical production, mining, pulp and paper, etc). Then, it has established the acceptable threshold of 70 % of this average. A company would have had to pay a carbon tax on all emissions above this threshold. However, Ottawa has raised the percentage to 80 %, and 90 % for the four sectors deemed to be most at risk of becoming less competitive. The result : lower emissions will be subject to pricing.

The officials indicated that the impact of this change is ” not significant “. “This is not a major change of policy. In our opinion, this is more of a minor adjustment of details of a policy, and we expect it has minimal impact on the GHG reductions, ” assured Mr. Moffet.

Ottawa has calculated that his plan for carbon pricing will lead to a decrease of the annual emissions of Canada’s GHG of 80 to 90 megatonnes (Mt). (In comparison, Canada needs to by 2030 to reduce its emissions by 139 Mt from their level of last December.) According to Mr. Moffet, the change announced this week will have an impact”, with a magnitude of less than 10 Mt “.

Companies that emit below the threshold will receive government credits that they can sell to other less effective. Ottawa estimates that the financial incentive remains intact.

The carbon tax Ottawa will apply from 1 January next year in the provinces that do not have a plan home to carbon pricing. Until now, Ontario and Saskatchewan (which, by challenging the constitutional validity) are referred to. The New Brunswick and Prince Edward island could also be affected, because their plan does not seem to meet the criteria of Ottawa. The Newfoundland plan is not yet public.

Ontario will table its challenge of the federal tax on carbon

Toronto — The Ontario government said on Thursday that it will introduce him to the courts its own challenge to the carbon tax that Ottawa intends to impose on the provinces that have not implemented their own pricing system next year.

The minister of the Environment of Ontario, Rod Phillips, and attorney-general, Caroline Mulroney, said in Toronto on Thursday morning, that this dispute is in addition to the decision of the prime minister and Doug Ford to participate in the court battle similar to that already undertaken by the government of Saskatchewan. Both provinces are challenging the constitutional validity of such federal action.