Wildrose leader Brian Jean says now is not the time to implement a carbon tax.
He said introducing a carbon tax at this time would affect all consumers and would hurt the thousands of Albertans already laid off due to low oil prices.
On Sunday, Nov. 22, Premier Rachel Notley unveiled Alberta’s Climate Leadership Plan, which includes a carbon tax, a cap on oilsands emissions and a phasing out of coal-fired electricity and emphasizes wind power.
Jean said the new carbon tax, which will see the price per of carbon emissions go from the current $15 to $20 by Jan. 2017 and $30 by Jan. 2018, will make almost every Albertan poorer, claiming the accelerated plans to shut down coal plants will lead to higher power prices and further jobs losses.
And Jean may have a point.
Certainly the increase in the carbon levy will have an impact on the oil industry.
In July, the Canadian Association of Petroleum Producers (CAPP) estimated the increase of the carbon levy along with the increase in the corporate tax rate would increase costs to the industry of about $800 million. The overall oilsands emission limit of 100 megatonnes, in all likelihood, also will have an impact on the bottom line on the energy sector as well.
If the policy is approved, the cost Albertans pay for their energy is expected to increase. The price of gas estimated to increase by 4.7 cents per litre and home heating costs will rise by an estimated $320 per year by 2017 and $470 by 2018.
However, the question remains. If now isn’t the right time to start implementing policies to reduce our carbon emissions then when?
Besides the environmental impact, higher carbon emissions also have serious economical ramifications.
Currently Alberta energy producers are suffering because of low oil prices. One of the ways they could help combat this by getting more of their product to market and therefore getting the higher world price.
But to do that the producers need to improve the pipeline infrastructure, something they are having a problem accomplishing, in part due to Canada and Alberta’s perceived environmental record.
In 2013, the Center for Global Development assessed 27 of the world’s wealthiest countries, including Canada on a number of issues, one being the environment.
Out of the 27 countries included in their CDI environmental survey Canada finished at the bottom. According to Owen Barder, who helped prepare the index, the reasons for Canada’s poor showing were numerous, from pulling out of the Kyoto Protocol to having one of the highest levels of greenhouse gas production per capita.
So far it looks like the oil industry believes the government is on the right track with representatives from three major energy companies and the CAPP speaking in favour of the plan saying the plan will help the industry improve its environmental performance and allow Canadian oil to reach more markets. If they are right? We will see.
