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noahqk @noahqk
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Canada’s carbon pricing plan kicks off in 2019, with provinces required to implement a $20/ton price, increasing to $50/ton by 2022. This thread is an attempt by an ignorant American to summarize the status in each province. Corrections/additions more than welcome!
Ontario: Launched cap-and-trade in 2017, linked to Quebec & CA. Its new Premier cancelled the program last month. The federal gov’t will impose a carbon tax on Ontario, and Ontario will challenge it in court. I don't know how likely this case is to succeed.
Quebec: Launched cap-and-trade in 2013; it's linked to CA, and fairly popular. Allowance prices ~$20/ton and likely to rise over time, but whether they reach $50/ton in 2022 is uncertain, and what the federal gov’t will do if prices are too low is unclear.
British Columbia: Current carbon tax of $35/ton. The tax rate will increase each year by $5/ton until it reaches $50/ton in 2021. No major effort to repeal.
Alberta. Carbon levy is $30/ton in 2018, constant until 2021 when it will increase to $40/ton then $50/ton in 2022. But if Jason Kenney, the United Conservative leader, wins the 2019 election, he has said he’ll scrap/narrow the plan, which would cause federal gov't to step in.
Manitoba: $25/ton tax will be implemented in Sept 2018. EITE industries get a separate program. The rate will stay constant thru 2022, which will violate federal requirements. Manitoba says it will sue if/when federal gov't raises the tax. Opposition party wants a higher tax.
Saskatchewan: Categorically refuses to adopt a carbon price and is challenging the federal government’s authority to impose one. This opposition is highly popular in the province.
Nova Scotia: Designing a cap-and-trade policy. Says it'll begin in Jan 2019, but targets haven’t been set. Plans to implement its own program, but joined WCI for back office-type help. Says only 20 companies will participate, which seems too low for a well-functioning market.
New Brunswick: Says it will comply with the federal requirement by diverting some existing gas tax revenue into a “climate fund,” which clearly will not comply, so federal backstop likely needed. There is an election this year, but opposition party opposes carbon pricing also.
Newfoundland: has said it's plan will be released by the Sept deadline; for now it'll only say it’s similar to Alberta’s (and “much better” than the federal plan..). But says if Ontario is able to opt out, it will do so too. Opposition party opposes the carbon price.
Prince Edward Island: Says it will submit a climate plan by Sept that does not include a carbon price. Says the federal government is free to impose a tax if it wants. From quotes I’ve seen, the liberal Premier seems to genuinely not understand how a carbon tax works.
Northwest Territories: Will implement its “Made-in-the-North” approach (not a GOT reference), which seems similar to the federal backstop. But lots of exemptions and rebates directed to energy producers and consumers: will these avoid affecting the price signal?
Yukon & Nunavut: Both appear to be letting the federal government impose its backstop plan, with some specifically negotiated exemptions. Nunavut’s Premier says the territory should be exempt from the tax.
Finally, there is a federal election in 2019, and the opposition leader Andrew Scheer will do away with carbon pricing plan if he wins. He claims to have “a very detailed and comprehensive plan” to meet Canada’s Paris targets without a carbon price, but won’t say what it is…
That's all I got. I’m sure this riddled with omissions/errors, and I still have plenty of question. You’re doing me a favor if you respond with edits. Thanks for reading!
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