Alberta to introduce economy-wide carbon tax in 2017

CALGARY, Alberta-The government of oil-rich Alberta province in western Canada on Sunday pledged to phase out coal emissions by 2030, limit greenhouse gases from oil-sands production and implement an economywide carbon tax.

“This is the day we step up, at long last, to one of the world’s biggest problems – the pollution that is causing climate change”, Premier Rachel Notley said as she announced her government’s new policy in Edmonton on Sunday.

Notley will bring her plan to a Monday meeting of Canadian premiers with Prime Minister Justin Trudeau, to prepare the national strategy for the upcoming Paris climate-change summit.

Alberta’s energy sector also has been hammered by slumping global oil prices that have prompted thousands of layoffs in recent months. “One that should provide greater predictablity for both the industry and the province on a go-forward basis”, Edwards said. The Canadian Association of Petroleum Producers criticized that plan, but said the industry could work collectively to develop the technology needed to ensure the economic vitality of the oil and gas sector in a low-carbon economy.

The Trudeau government has decided not to come up with a new national target before heading to COP21, working instead with the target by the previous Conservative government that was to reduce emissions by 30 per cent below 2005 levels by 2030, and then gather the premiers again within 90 days of Paris to figure out a new one. She said she was convinced Alberta’s residents will willingly pay higher prices for electricity as a result of the emissions cap, but said the revenues collected under the carbon tax will be returned to help those in need.

Leach said it was “crucial” to the panel’s overall recommendations that the carbon tax be distributed in such a way as to not overly burden “lower-income or vulnerable communities”.

Alberta will also introduce an economy-wide carbon tax of 20 Canadian dollars per ton on carbon-dioxide emissions starting in 2017, increasing to 30 Canadian dollars per ton the year after – a price hike estimated to be slightly less than 2 cents per gallon of gasoline. Pilot projects that use solvents in oil sands in situ operations, and projects that use carbon capture and storage technology are examples of technological innovation our industry is already pursuing to reduce per barrel emissions even further.

Boyko said Ontario Power Generation partnered with previously closed pulp and paper mills for a green solution that created and saved jobs while helping meet the coal-free goal.

The province has also signalled it will seek early closure of a few coal-fired power generating plants – a move likely to be controversial.

Ontario’s long-term strategy to fight climate change will be released Tuesday, on the heels of a federal-provincial meeting and Alberta’s newly unveiled plan.

The government said the “unprecedented” oil-sands emissions cap is supported by executives in that industry and will help “change the debate” about the province’s most important export.

The oil sands, natural deposits of tar-like heavy oil, are a key driver of the Canadian economy and put the province’s reserves behind only Venezuela and Saudi Arabia.

Currently, oil sands generate about 70 megatonnes of carbon a year.