Provincial Government Releases Carbon Pricing
The Federal Government announced plans to implement carbon pricing in 2016 to help Canada meet its greenhouse gas emission targets, and announced on Tuesday that it is accepting the Government of Newfoundland and Labrador’s plan for carbon pricing. The plan comes into effect on January 1, 2019, and reflects the province’s role in helping to address climate change while balancing environmental and economic priorities.
The province’s carbon pricing system is based on the principles of maintaining competitiveness for taxation and trade, minimizing the impact on consumers and vulnerable groups, recognizing the considerable cost we are already paying to decarbonize electricity and delivering meaningful reductions in greenhouse gas emissions.
Key elements of the provincial plan include:
Consumers Will not be taxed on home heating fuels, as they would have been under the Federal Government’s plan. The four cent temporary gas tax will be eliminated and replaced with a federally-mandated 4.42 cent carbon tax, which equates to $20 per tonne. The five cent additional gas tax on diesel will be eliminated and replaced with a federally-mandated 5.37 cent carbon tax, which equates to $20/tonne. Exemptions to carbon tax for off-grid diesel electricity generation, aviation fuel, interprovincial marine transportation, and municipalities.
Industry A performance-based system for offshore and onshore industries that will establish greenhouse gas reduction targets for large industrial facilities and large scale electricity generation. Exemptions from carbon tax for agriculture, fishing, forestry, offshore and mineral exploration, and methane gases from venting and fugitive emissions in the oil and gas sector.
Climate Change When Muskrat Falls achieves full power, renewable electricity consumed in Newfoundland and Labrador will rise to 98 per cent; Partnering with the Federal Government to create jobs in a green economy, as well as reduce the impacts of climate change and carbon emissions. This will be achieved through such initiatives as the Climate Change Action Plan, which will guide investments in the $89.4 million Low Carbon Economy Leadership Fund and the $300 million dedicated to green infrastructure through the Investing in Canada Plan.