The provincial government on Aug. 19 unveiled the Climate Leadership Plan, leading to the creation of up to 66,000 jobs over the next 10 years and reducing net annual greenhouse gas emissions by up to 25 million tonnes below current forecasts by 2050.
The plan’s initial 21 action items include making electric vehicles more affordable and buildings more energy efficient. Right now, energy generated in B.C. is almost completely clean and renewable (97.9 per cent). This plan will see us achieve 100 per cent renewable energy. B.C.’s revenue-neutral carbon tax is currently the highest broad-based carbon price in North America.
The tax, introduced in 2008 at $10/tonne of carbon dioxide equivalent emissions (CO2e), is currently set at $30/tonne until 2018, and applies to most fuel purchased or used in B.C. All carbon tax revenue is returned to British Columbians in the form of tax relief measures.
Several other Canadian jurisdictions have either implemented or plan to implement carbon-pricing systems. The tax encourages companies and consumers to choose cleaner and more efficient ways to operate, and creates opportunities for low-carbon innovation. These systems all differ from B.C.’s in price, scope and design details.
While the rest of the country examines and implements carbon pricing, B.C. still has the highest carbon tax. Alberta’s tax will be raised to match B.C.’s $30/tonne carbon price in 2018. Quebec currently utilizes a cap-and-trade system that prices carbon emissions at about $16/tonne; Ontario is in the planning stages to join Quebec’s system. The remainder of the provinces have no specific policies or prices.
Ultimately, having these various tax rates and prices between jurisdictions in a country creates economic advantages for some at the expense of others. To make increases now would further widen the gap and potentially harm B.C’s economy. B.C. industries are the only ones in North America who pay this high carbon price and our citizens are the only Canadians paying an additional seven cents per litre at the gas pump.
As federal-provincial conversations on climate change continue, B.C. supports the adoption of the province’s $30/tonne carbon tax as the benchmark price across the country. As any effective price on carbon has to go up over time, B.C. also supports increasing that price together in an affordable way, once others catch up. The B.C. government is taking action with an approach that balances environmental responsibility with economic opportunity.
B.C. remains the national leaders when it comes to climate action and we are willing to do more. We look forward to working with the rest of the country on a strategy for climate change and clean growth later this fall and encourage other provinces to join our lead on climate action.
View the Climate Leadership Plan, and learn more about the actions B.C. is taking, at gov.bc.ca/climateleadership.
