The government unveiled their draft legislation for carbon pricing mechanisms, largely as the backstop for those provinces whose governments are toeing the agreed-upon line, and it includes both pricing incentives for those who can get 30 percent below the national standards, as well as the ability for the federal government to directly reimburse individuals for their carbon payments rather than just returning it all to provincial coffers and letting the provincial government figure it out.
.@cathmckenna says 'we're not letting anyone off the hook' over provisions to protect industrial emitters' international competitiveness. #cdnpoli pic.twitter.com/Y2UgV8RFqd
— Power & Politics (@PnPCBC) January 15, 2018
Energy economists Andrew Leach and Trevor Tombe dig into the announcements a bit more.
It's going to take a while to get through the fine print, but the federal carbon pricing regime is, for all intents and purposes, the Alberta system. A consumption-side carbon price and an industrial emitters regime with output-based allocations to protect competitiveness.
— Andrew Leach (@andrew_leach) January 16, 2018
This is, I believe, the 5th major GHG regulatory effort out of ECCC in the last 12 years, under three governments. LPC Project Green, CPC Reg Framework, CPC cap-and-trade, CPC sector-by-sector approach, LPC carbon pricing backstop.
— Andrew Leach (@andrew_leach) January 16, 2018
I think this might be the most interesting part of the federal GHG backstop policy: fed gov't discretion on distribution of revenues from carbon charges. 1/N #cdnpoli pic.twitter.com/vt1yYXyOh5
— Andrew Leach (@andrew_leach) January 16, 2018
A similar clause appears in the industrial regulations for GHGs, allowing more discretion than I'd expected in how any excess compliance payments are used. #CDNpoli pic.twitter.com/Dbnh9d80uQ
— Andrew Leach (@andrew_leach) January 16, 2018
Here, you will find the Federal Government response to the proposed Carbon Tax Repeal Act of 2019 in Alberta. #ableg #CDNpoli pic.twitter.com/9pPw0EtOcU
— Andrew Leach (@andrew_leach) January 16, 2018
Provisions in the Act to extend the time period beyond 2022 or, interestingly, to change the price schedule between now and 2022. pic.twitter.com/FOlCD2yyvJ
— Andrew Leach (@andrew_leach) January 16, 2018
Offsets are possible under the regulations, but as of now, there are no federal guidelines. Will be interesting to see whether AB offsets would be eligible for compliance in, say, Saskatchewan. #CDNpoli #ableg pic.twitter.com/zLp78oCD3H
— Andrew Leach (@andrew_leach) January 16, 2018
An interesting comparison: the proposed GHG prices in the Harper plan of 2008 vs the Trudeau plan of 2018. PMSH price for 2016 was the same as PMJTs proposed price for 2022. #CDNpoli pic.twitter.com/K6ErqhOLvT
— Andrew Leach (@andrew_leach) January 16, 2018
Interesting to note the use of funds: Feds will distribute their CTax proceeds to the province *OR* persons in a prescribed manner (i.e., Feds leaving themselves discretion to provide low income rebates directly). S. 164 (2): pic.twitter.com/MgAealhKJB
— Trevor Tombe (@trevortombe) January 15, 2018