Alberta to double carbon tax by 2017
Alberta’s environment minister has pledged to make her province a world leader on climate change, starting with plans to increase the province’s carbon levy on Jan. 1 from its current $15 per tonne to $30 by 2017.
Alberta’s New Democrats have been under pressure to do more to reduce greenhouse-gas emissions ahead of a major climate-change conference set to start in November. With the province’s carbon levy on large emitters set to expire at the end of June, Environment Minister Shannon Phillips said Thursday that the levy’s renewal through to the end of 2017 was an interim measure.
“Our regulations are now obsolete and do very little to either address the climate-change issue or to earn us greater market access,” she said.
“Let’s be clear, no other jurisdiction and no energy market is going to accept that this constitutes an effective climate-change policy. We need to do better.”
The eight-year-old carbon levy had required producers to pay the charge if emissions intensity wasn’t cut by 12 per cent from a baseline unique to each individual producer. Under the new rules, producers will be required to reduce carbon-emissions intensity by 15 per cent in 2016 and 20 per cent in 2017.
Alberta’s regulations currently price carbon at about $2 per tonne. The stricter rules will raise that cost to about $6 by 2017 – a 300-per-cent increase. At that time, the province expects the new rules will reduce greenhouse-gas emissions by 13 megatons annually. Under existing rules, an eight-megaton reduction had been expected.
“Not only is it the right thing to do, it’s the right time to do it,” said Brian Vaasjo, the CEO of Capital Power. The Edmonton-based utility operates 17 power-generating facilities and is Alberta’s leader in new power generation, according to Mr. Vaasjo.
Andrew Leach, an energy and environmental economist at the University of Alberta, will chair an advisory panel announced Thursday that will comprehensively review the province’s climate-change policy and make recommendations for new measures.
According to Prof. Leach, the panel wants to make a preliminary proposal on new climate measures before the end-of-year Paris climate conference, also known as COP 21. The panel’s membership will be announced in the next few days.
“When you talk about climate change policy, in particular in Canada, Alberta is essentially the second word you hear in any conversation, and when you talk about climate change in Alberta, oil sands is going to be the next word,” said Prof. Leach.
The panel will go far beyond the oil sands and the emissions from large businesses and will look at new roles that will impact all Albertans.
On Friday, Alberta’s energy minister is expected to announce the details of a pending royalty review. In an interview with The Globe and Mail, Premier Rachel Notley said that the royalty review and climate panel would need to work together to write new rules that link Alberta’s climate and energy rules.
“The province of Alberta will shortly be announcing a royalty review,” said Ms. Phillips. “We well understand that these two initiatives need to add up, talk to one another, and work together. When this work is done Alberta will have a modern, effective climate-change strategy and an appropriate royalty regime.”
Alberta to double carbon tax by 2017 - The Globe and Mail
