Pan-National Climate Agreement

Two weeks I wrote that Trudeau was busy approving pipelines in Canada. Now, I am writing that he has passed a rather historic climate deal with the provinces. This is a man having his cake and eating it too (for now).

Here is the official government announcement of the Pan-Canadian Framework on Clean Growth and Climate Change. Essentially, all provinces have agreed to a price on carbon (set at $10 dollars starting in 2018 and increasing $ from there – meeting a $50 minimum by 2022).

All provinces except Saskatchewan. Brad Wall, the premier of SK, has adamantly (and stubbornly) refused to sign any deal that includes a price on carbon. As I have written elsewhere, he would prefer to use carbon capture and storage (and perhaps other geo-engineering plans) to off-set CO2 emissions in the province. SK is the biggest emitter of CO2 per capita in the country.  The province is clearly an outlier. A problematic one.

Here is a good article from CBC that explains where each province stood on carbon pricing back in October, before the pan-national deal. BC, AB, MT, ON, and QU have all had various forms on carbon pricing in the past. Notably, BC and AB have a tax and ON and QU use cap-and-trade (click chapter 8 on the left for past blog posts explaining these policies). Thus, a price on carbon is not new to them – in fact, they have been waiting a while for the federal government to catch up and address climate change. However, BC did make a deal with Trudeau regarding the specific price of carbon, since the province’s revenue neutral carbon tax has been in place since 2008 and works a bit differently than other provincial plans. Premier Christy said BC would be unwilling to sign a plan that has the province meeting a $50 minimum tax by 2022 – instead, the province would like to continue with their established carbon tax and “make-up” the difference in the price of emissions (if there any) by other means.

This climate deal is an important step forward in Canada. However, it is not clear if passing pipelines and carbon prices in the same two-week period will get the country anywhere close to its 2030 targets under the Paris Agreement.

 

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2 Replies to “Pan-National Climate Agreement”

  1. In a recent CBC article, Brad Wall said he will take the federal government to court over the carbon pricing rather than implement it in SK. I wonder why he even bothers if it is the federal government’s prerogative to implement a national carbon pricing strategy with our without he buy-in of provinces and territories?

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