Canadian Pollution Caps & Fuel Taxes For Provinces In The Works

The government of Canada is now planning the imposition of pollution caps on the provinces that haven’t yet agreed to support a national carbon price, according to recent reports.

Image via Saskatchewan Cancer Center

The two provinces in question, which have yet to agree to a national carbon price, are Saskatchewan and Manitoba. The Premier of Saskatchewan, Brad Wall, has previously stated that he would sue the federal government if a national carbon price was enacted, as it would raise costs at a time when the US president is talking about reducing corporate taxes.

In addition to those plans, the federal government of Canada is now also proposing a levy on fossil fuels that would be increased at an annual rate. As regards to pollution caps, those that exceeded set targets would be forced to pay penalties.

“Making polluters pay is a critical part of any climate plan,” commented Environment Minister Catherine McKenna. McKenna noted that all of the funds raised this way would be returned to the provinces.

Reuters provides more: “Last December the Liberal government of Prime Minister Justin Trudeau reached a deal with 8 of the 10 provinces to introduce a carbon price as part of a push to curb emissions of greenhouse gases. Trudeau said at the time he would impose carbon pricing on holdout provinces. … Under Trudeau’s plan, carbon pollution would cost CAD$10 ($7.35) a tonne in 2018, rising by CAD$10 a year until it reaches CAD$50 in 2022. The provinces can either implement a carbon tax or a cap-and-trade market and eight have already announced plans to go for one of the two options.”

In relation to this news, the recent announcement by the two top “right-leaning” political parties in Alberta about a merger could eventually cause problems for the federal government’s plans. As it stands, Alberta is governed by a New Democratic Party government following a somewhat surprising election a while back. With the merger of the two rival parties, the New Democratic Party government, which supports a national carbon price, likely faces a serious rival in the 2019 election cycle.