![]() Riordan, please contact Media Relations Officer Mitchell Fox (34) or at Queen’s University News and Media Services Department in Kingston, Ont., Canada. The Canadian federal government recently announced that the carbon tax will increase from its current 30 per tonne of greenhouse gas (GHG) emissions to 170 per tonne in 2030 an increase of 467 over 10 years. Ryan Riordan (Smith School of Business and Research Director for the Institute for Sustainable Finance) is available to speak to what impact this change might have on Canada’s climate targets, emission reduction plans, and the carbon market. Since the tax is revenue neutral, every dollar. The carbon tax has been hailed as the most comprehensive of its kind, covering approximately 70 of provincial emissions. To offset the impact to Canadians, the government announced that it is also increasing the size of the carbon price rebate cheques issued to families.ĭr. In 2008, the Canadian province of British Columbia introduced North America’s first revenue-neutral carbon tax applied to the purchase or use of fuel in British Columbia. This will translate to an increase of roughly three cents per litre for gas, reaching a total of 14 cents per litre. The fuel charge is rising by 30 per cent from $50 per tonne of emissions to $65. On Apthe federal carbon tax increase came into effect in Ontario, Manitoba, Saskatchewan, Alberta, Yukon and Nunavut, and will be joined by Newfoundland and Labrador, Nova Scotia, and Prince Edward Island on July 1. This will likely become more pronounced as the carbon price increases dramatically towards the end of the decade.The federal government recently made changes to carbon pricing, but will it be enough to impact Canada’s climate change goal of reaching net-zero carbon emissions by 2050? It will encourage investments in technologies that use fewer fossil fuels, meaning a greater demand for electricity generally. Carbon pricing will also make other generation technologies more commercially viable, including emerging ones like CCUS and grid scale batteries. The carbon charge on natural gas is a flat amount set by the Government of Canada and is part of a multi-year plan. In jurisdictions that rely heavily on emitting forms of electricity, it will add upfront costs to generation. To support Canadas pursuit of its Paris goals, the charge will rise rapidly thereafter, reaching 170/tonne in 2030. For those provinces that don’t, the federal government sets up a federal “backstop.” The federal backstop has two parts: a charge on fuel, and an “output based pricing system” (OBPS) for industrial users.Ĭarbon pricing has major implications for Canada’s electricity sector. The Government of Canada has imposed a federal carbon tax that will impact your power and natural gas bills starting April 1, 2019. Prime Minister Justin Trudeau will increase his carbon tax by 10 to 50 per tonne of emissions on Apup 25 from this year’s 40 per tonne levy rising to 170 per tonne in 2030. As a result, the Government of Canada is imposing its federal Fuel Charge (the backstop) on Newfoundland and Labrador and the province is repealing its. This is because while the Government of Canada has set a national price for carbon-currently $50/tonne and rising to $170/tonne by 2030-and allows individual provinces to implement it as they see fit. While there are many government programs to encourage consumer choices to move away from carbon like ZEV rebates, energy efficiency programs, and transit investments, to name a few, it will be making emitting GHGs more expensive that drives the biggest reductions.Ĭanada has a patchwork of different pricing systems that vary from province to province. Canada has identified carbon pricing as a primary tool to reduce emissions.
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