Notley government unveils climate change policy and carbon tax

The Canadian province of Alberta, holder of the world’s third-largest oil reserves, has proposed a new climate change plan that will give efficient oil-producing companies room to grow while cutting carbon emissions, experts and stakeholders said on Monday.

The plan will see the province move to cap oilsands emissions, phase out coal-fired electricity plants, and move to more enviro-friendly fuel sources over the next 15 years. “It’s another example of the way Canadian provinces and cities are leading the way on climate change while strengthening and diversifying their economies”, said David Suzuki Foundation science and policy manager Ian Bruce. “The last piece of the puzzle will be a strategy from the federal government to build on the growing momentum”.

“This is the day that we start to mobilize capital and resources to create green jobs, green energy, green infrastructure and a strong, environmentally responsible, sustainable and visionary Alberta energy industry with a great future”, Premier Rachel Notley said.

The plan also includes economy-wide carbon pricing, which Alberta will phase in over a two-year period, charging $20 per metric ton in January 2017 and $30 per metric ton in January 2018.

The first ministers ended their first formal meeting in almost seven years professing a united front as they prepare for next week’s opening of a United Nations climate summit in Paris.

While very expensive, there are dozens of other CCS projects now up and running and many more in development around the world. In particular, the Climate Panel recommends that the existing Specified Gas Emitters Regulation (SGER) be replaced in 2018 by a Carbon Competitiveness Regulation that will broaden the reach of the province’s existing carbon pricing regime and implement additional policies to reduce the emissions intensity of the province’s electricity supply and its oil and gas production. “I think what it was, was deficit neutral”, said Chris Ragan, chair of the Ecofiscal Commission and professor of economics at McGill University, who added the plan is an important step forward for Alberta. “With the carbon price, you always have to judge against an alternative”.

The transmission system is critical to the success of the Climate Leadership Plan, as it will transmit electricity from wind, solar, or geothermal generation projects across Alberta. The Alberta government has responded to protect the health of all Albertans, particularly those who suffer from respiratory disease, such as asthma.

Norway has the world’s oldest and most sophisticated carbon tax and government statisticians there concluded years ago it has not significantly reduced emissions. The framework announced will allow ongoing innovation and technology investment in the oil and natural gas sector.

“I’m hoping today that we can have some agreement among the premiers and the prime minister”, Wynne said.

“A united Canada will demonstrate that we are serious about climate change”.

Greenpeace Canada described the plan as a “historic first step” to slowing growth of pollution, but said more needed to be done by all jurisdictions to prevent risky changes to the climate.

Out of Canada’s 10 provinces, Alberta is the biggest source of greenhouse gas emissions by far.

The country’s first ministers say Canada’s worldwide reputation as an environmental laggard could soon disappear because the country is moving ahead with meaningful action on the environment.