Minister of Environment and Climate Change Catherine McKenna speaks during the Canada 2020 Conference in Ottawa on Tuesday, June 5, 2018. (THE CANADIAN PRESS/Justin Tang)

Feds ease carbon tax thresholds

Alberta, B.C., Manitoba and Quebec have carbon pricing plans expected to meet requirements for 2019

Bowing to concerns about international competitiveness, the Trudeau government is scaling back carbon pricing requirements for some of the country’s heaviest energy users, and signalling that more easing could come before the plan takes effect in 2019.

Environment and Climate Change Canada has issued new requirements that will increase the emissions threshold at which polluters will have to pay a carbon price.

The system will only affect industries in provinces which don’t have their own federally-approved carbon pricing system. All provinces and territories have to submit their carbon pricing plans by September, and if they don’t meet federal requirements, consumers and industries in those provinces will be subject to part or all of the federal system.

That includes a minimum carbon price of $20 per tonne of emissions for most fuels such as gasoline, diesel, propane and natural gas. Larger industrial emitters whose annual emissions exceed 50,000 tonnes will be exempted from paying the carbon price on their fuel inputs, and instead pay it on what they emit over a certain amount.

In January, the federal government suggested that threshold would be set at 70 per cent of the average emissions intensity for their industry. The carbon price would apply to any emissions exceeding the threshold, and companies that emit below the threshold will receive credits from the government they can trade to companies that exceed the limit, to create a market incentive for companies to find a way to reduce their greenhouse gas footprint.

Emissions intensity is the amount of greenhouse gases produced per unit of production.

READ MORE: Ontario, Saskatchewan premiers unite to oppose federal carbon plan

After a two-phase review that looked at historic emissions and trade exposure for several industries, the federal government has decided to raise that threshold.

Cement, iron, lime and nitrogen fertilizer producers will have their threshold raised from 70 per cent to 90 per cent. The other affected industries, such as mining, potash, pulp and paper, and oil refineries, will have the threshold increased from 70 per cent to 80 per cent.

The government is accepting comments from industry on the plan with an aim to finalizing the threshold system this fall, for implementation in 2019.

The revisions come as big industries face competitive threats from south of the border in the form of corporate tax cuts and protectionist tariffs, and as Ottawa prepares to replace Ontario’s cap-and-trade system with its own carbon levy.

The new Progressive Conservative government in Ontario has eliminated the province’s cap-and-trade system and is joining Saskatchewan in a court case challenging the federal government’s jurisdiction to impose a carbon price on provinces.

Alberta, B.C., Manitoba and Quebec all have carbon pricing plans that are expected to meet federal requirements for 2019, meaning the federal system will not be imposed there. Nova Scotia has a cap and trade system that will kick in next year that also could meet federal requirements.

The Canadian Press

Like us on Facebook and follow us on Twitter

Just Posted

Horses from Victoria Carriage Tours involved in second incident in three months

Witnesses: Horses veered into a parked vehicle, smashing windows, climbing onto roof with front hooves

Vehicle stolen in Oak Bay carjacking found

Oldsmobile Alero found Monday in restricted parking zone in Victoria

Stolen Search and Rescue dog harness replaced by donation

Moxxii’s specialized harness was stolen at the Pet-A-Palooza festival

Seaplane flights cancelled between Victoria and Vancouver due to smoke

Harbour Air has grounded flights travelling through the Georgia Strait

First stores open in Victoria’s expanded Mayfair shopping centre

Construction project will add about 100,000 square feet of retail space and 400 parking stalls

PHOTOS: Puppy love makes a splash at St. Ann’s Academy

Puppies stampede, dive and do yoga at Victoria’s largest outdoor pet festival

Vehicle fire on the Coquihalla

Heavy congestion in north bound lanes

Prime minister greeted by B.C. premier as cabinet retreat begins

PM Justin Trudeau and Premier John Horgan meet in advance of federal cabinet meetings in Nanaimo

Are your kids anxious about going back to school?

BC Children’s Hospital offers tips to help your children be mindful and reduce stress

New trial ordered for James Oler in B.C. child bride case

Meanwhile, appeal court dismisses Emily Blackmore’s appeal of guilty verdict

This trash heap in Vancouver could be yours for $3.9 million

Sitting atop 6,000 square feet, the home was built in 1912, later destroyed by fire

Team Canada’s next game postponed at Little League World Series

They’re back in action on Wednesday against Peurto Rico

Ex-Trump lawyer Cohen pleads guilty in hush-money scheme

Said he and Trump arranged payment to porn star Stormy Daniels and a former Playboy model to influence the election

Greater Victoria Crime Stoppers wanted list for the week of Aug. 21

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

Most Read