Carbon Tax Announced for 2017
Alberta to introduce economy-wide carbon tax in 2017
Alberta’s NDP government is imposing new curbs on emissions from the oil sands and establishing an economy-wide carbon tax in a sweeping new plan aimed at showing it is serious about fighting climate change.
The long-awaited strategy, which comes days before world leaders meet in Paris for a major climate summit, also includes a phase-out of coal-fired power generation in the next 15 years, a 10-year plan to nearly halve methane emissions, as well as incentives for renewable energy.
There are no carbon targets, but under the plan, Alberta’s carbon emissions will begin to fall under today’s levels by 2030.
The government of Premier Rachel Notley has said the lack of a wide-ranging climate policy has hampered the province’s energy industry has it has tried to convince the United States and other trading partners to accept more shipments of crude from the oil sands.
Indeed, U.S. President Barack Obama said early this month that his country’s efforts to battle climate change would be tarnished by approving TransCanada Corp.’s Keystone XL pipeline that would ship Alberta oil to Texas refineries. He rejected it following seven years of review.
The NDP devised the new strategy with data from research conducted by a panel it appointed, led by University of Alberta economist Andrew Leach.
The energy sector had warned that onerous new costs would be disastrous for an industry under severe financial pressure due to the collapse in crude oil prices.
New measures in the policy include:
- A cap of 100 megatonnes on carbon emissions from the oil sands sector, which had been Canada’s fastest-growing source of emissions, once new rules are adopted. It currently emits 70 megatonnes annually.
- An economy-wide tax of $20 per tonne on carbon-dioxide emissions starting in 2017, rising to $30 in 2018. Equal to seven cents per litre of gasoline.
- A phase out of coal-fired power by 2030.
- Incentives to promote more use of renewable energy sources as well as to improve energy efficiency.
More to come
Alberta to introduce economy-wide carbon tax in 2017 - The Globe and Mail