Yesterday was the day that Justin Trudeau decided to start playing hardball. Under the backdrop of the debate on ratification of the Paris Agreement on GHG emissions, he dropped the hammer on a minimum national carbon price, starting at $10 per tonne in 2018, rising to $50 per tonne by 2022, and provinces would keep the revenue with the intention that it be revenue neutral, so as not to ensure this is a federal “tax grab.” Any province that doesn’t comply will have the price imposed and the revenues returned to them. Stéphane Dion feels vindicated by this development, incidentally. Oh, and Trudeau probably isn’t going to meet with the premiers about their demands around the health transfer escalator either.
https://twitter.com/Geddes28/status/783000372730298370
Some of the provinces were immediately incensed. At the environment ministers’ meeting in Montreal, ministers from Saskatchewan, Nova Scotia and Newfoundland and Labrador walked out of the meeting, and true to his diva self, Saskatchewan Premier Brad Wall declared the “level of disrespect” to be “stunning” – never mind that Trudeau has been telegraphing this move ever since the Vancouver premier’s meeting. Alberta, incidentally, whose own plans surpass Trudeau’s, say that they won’t support it unless there’s a commitment for more pipelines, while Manitoba is non-committal for the moment. (Other provincial positions here).
https://twitter.com/emmmacfarlane/status/783133654050541569
https://twitter.com/emmmacfarlane/status/783134550151065600
Brad Wall, for his part, is threatening to take the government to court over carbon pricing, but it’s not likely to get anywhere.
https://twitter.com/cmathen/status/783058718438981632
In terms of analysis, economist Trevor Tombe reminds us why pricing carbon is the most effective market mechanism to deal with climate change, while John Ivison says that Trudeau may have outsmarted his opponents, and Andrew Coyne notes the one-sidedness of any federal-provincial negotiations.