carbon tax

Cap and Trade in Quebec and Ontario: A Primer

Cap and trade is in the new kid in town as far as carbon pricing goes in Canada. In April, just before the Premiers' Climate SummitOntario made headlines by announcing it will join Quebec’s cap and trade system, which is linked to cap and trade in California.

So just how does it work? Here's our short primer.

The system was first adopted by Quebec in 2013 (although it’s worth noting the province did impose a tax on gas and diesel fuel back in 2007).

The benefits of emissions trading, beyond ensuring the climate goal is reached in a measurable manner, is that business has flexible compliance options and ‘carrots’ — incentives for making smart, economic business decisions,” Katie Sullivan, director for North America and Climate Finance at the International Emissions Trading Association, said.

Like Alberta’s carbon levy, Quebec’s system puts a price on emissions above a certain level.

Alberta's Carbon Levy: A Primer

Carbon Pricing Alberta. Image oilsands emissions by Kris Krug

It may come as a surprise to some that Alberta pioneered carbon pricing — not just in Canada, but for all of North America.

That’s right: the province with the fastest growing greenhouse gas emissions in Canada was the first place on the continent to put “polluter pays” legislation into place almost exactly eight years ago.

Even back in 2007, Alberta was getting pressure over its environmental management, particularly of the oilsands. This may have been in response to that,” Matt Horne, associate B.C. director at the Pembina Institute, told DeSmog Canada.

What’s Stopping Canada from Putting a Price on Carbon?

For the first time in several years, carbon pricing in Canada is back on the national radar.

Recently a group of more than 60 Canadian experts published a report, Acting on Climate Change, that outlined Canada's path to a low-carbon future. Their first recommendation? Put a price on carbon. The idea seems to be gaining serious traction with Canadians, the majority of which support carbon pricing according to a recent Angus Reid poll. 

In the lead up to this month’s Premiers’ Climate Summit in Quebec City, Ontario’s premier Kathleen Wynne announced her province would join Quebec’s cap-and-trade agreement with California — putting major stock in a carbon-pricing solution to provincial emissions.

The conservative Manning Centre conference was praised for holding an “adult conversation” about carbon pricing in March just after a collaboration between oilsands majors and green groups working together for a carbon tax hit the press.

Most Canadians Support Carbon Pricing, See Climate as Election Issue: New Poll

A new poll released today by Angus Reid finds the majority of Canadians support carbon pricing programs and more than half the population would like to see a national climate policy instituted at the federal level.

Although Canadians say they’re ready for climate action, there’s a lot less certainty surrounding climate leadership at the federal level, according to poll results.

There also appears to be some question about the actual impact of a carbon price but, despite the uncertainty, 75 per cent of Canadians support the idea of a national cap and trade program, and 56 per cent support the idea of a national carbon tax.

Currently Canada has a smattering of province-led carbon price initiatives — B.C.’s celebrated carbon tax being perhaps the most notable — although no national program to reduce emissions exists.

Top 3 Myths About Greening Canada’s Economy

This is a guest post by Sustainable Prosperity, a national green economy think tank.

This is a big week for Canadian energy and climate policy, with Monday’s Canadian Round Table on the Green Economy and Tuesday’s premiers’ climate summit. With all the talk of a “green economy,” we’re releasing a new video explaining what that ubiquitous term really means.  

What better time than now to bust a few myths about the “what” and the “how” of a greener Canadian economy?

Canada Will Miss Its Climate Target And We’ll All Miss Out

I don’t think anyone in Canada expects our good country to meet its climate target — even with the imminent pressure of the UNFCCC meeting in Paris later this year weighing down on our collective shoulders.

We have no reason to harbour that expectation given that our own federal government via Environment Canada has been telling us for years that Canada is running off the climate track and — because of growing emissions largely from the oil and gas sector — we are getting farther and farther away from meeting our government's self-imposed climate targets.

Because of that climate failure, Canada is holding all of us back from prosperity, jobs and better health.

That’s according to a new study of benefits from international emission pledges made in the lead up to December’s UN climate summit.

Developed countries around the world — with the exception of Canada and Japan — are unveiling their individual climate plans, which are due today.

Here’s How Canada Could Have 100% Renewable Electricity by 2035

Canada could become 100 per cent reliant on low-carbon electricity in just 20 years and reduce its emissions by 80 per cent by 2050, a new study shows.

The report calls for bold policies to be adopted immediately in order for Canada to transition to a sustainable society.

Twenty years ago Canada was a leader on the climate change file. But today our reputation on this issue is in tatters,” James Meadowcroft, political science professor at Carleton University and one of the report’s authors told DeSmog Canada. “It is time for us to get serious and take vigorous action to move towards a low carbon emission economy.”

The report is a collaboration between 60 Canadian scholars and outlines a 10-point policy framework to achieve dramatic emission reductions. At the top of the list is the need to put a price on carbon which was unanimously recommended by the report’s authors.

The Reality of Stephen Harper vs. The Reality of Carbon Taxes

stephen harper, carbon tax

Last night Prime Minister Stephen Harper and his house band, the Van Cats, took to the stage at a Conservative Christmas Party in Ottawa. Seated at the keyboard, the Prime Minister warbled through a performance of the Guns n’Roses classic ‘Sweet Child of Mine.’

Less than 24 hour earlier that the Prime Minister was singing a different tune.

Earlier in the day, the Harper railed against the concept of carbon taxes and regulation of the fossil fuel industry during Question Period in the House of Commons. In response to questions from NDP environment critic Megan Leslie about the Conservative’s 2007 pledge to regulate greenhouse gas emissions, he replied:

Under the current circumstances of the oil and gas sector, it would be crazy — it would be crazy economic policy to do unilateral penalties on that sector; we're clearly not going to do that. …In fact, Mr. Speaker, nobody in the world is regulating their oil and gas sector. I would be delighted if they did. Canada would be there with them.”

All of the above are indeed words, but when used by the Prime Minister in this combination they give a result that’s completely and egregiously incorrect.

G20 Governments are Spending $88B Each Year to Explore for New Fossil Fuels. Imagine if Those Subsidies Went to Renewable Energy?

oil change international, subsidies, oil gas exploration

Rich G20 nations are spending about $88 billion (USD) each year to find new coal, oil and gas reserves even though most reserves can never be developed if the world is to avoid catastrophic climate change, according to a new report.

Generous government subsidies are actually propping up fossil fuel exploration which would otherwise be deemed uneconomic, states the report, “The fossil fuel bail-out: G20 subsidies for oil, gas and coal exploration.”

Produced by the London-based Overseas Development Institute and the Washington-based Oil Change International the 73-page analysis also noted the costs of renewables is falling and the investment returns are better than fossil fuels.  

Every U.S. dollar in renewable energy subsidies attracts $2.5 in investment, whilst a dollar in fossil fuels subsidies only draws $1.3 of investment,” said the report released Tuesday, just days ahead of the G20 leaders meeting in Brisbane, Australia.

The report also notes the G20 nations are creating a ‘triple-lose’ scenario by providing subsidies for fossil-fuel exploration.

B.C. Ought to Consider Petronas’ Human Rights Record Before Bowing to Malaysian Company's LNG Demands

Penan people of Sarawak blockade a Petronas pipeline

It should come as no surprise that Petronas expects B.C. to cave in to its demands to expedite the process of approving its Pacific NorthWest LNG terminal and natural gas pipeline, lowering taxes and weakening environmental regulations in the process.

After all, Petronas has a well-established record of getting what it wants in the other countries it operates in, such as Sudan, Myanmar, Chad and Malaysia.

This week, the B.C. government did cave to at least one Petronas’ demands — cutting the peak income tax rate for LNG facilities from seven to 3.5 per cent, thereby slashing in half the amount of revenue it’s expecting to receive from the liquefied natural industry.  The government also introduced a standard for carbon pollution for B.C.’s LNG industry, which was hailed as a step in the right direction, but not enough.

In considering Petronas’ bid to develop B.C.’s natural gas resources, it is vital that we consider the company’s track record.

In 2011, I had the opportunity to witness the destruction caused by a Petronas pipeline, while working with the international NGO Global Witness. While staying with the semi-nomadic Penan people of Sarawak (Malaysian Borneo), I heard testimony of how the company had treated them in the course of constructing the pipeline.

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