Ottawa should leave the carbon-pricing regulations to the provinces, says CIAC

Ottawa to levy tax against polluting industries in non-compliant provinces under planned carbon-pricing regime

In response to the Liberal government tabling the Greenhouse Gas Pollution Pricing Act, Bob Masterson, President and CEO of the Chemistry Industry Association of Canada (CIAC), told the Globe and Mail in an article published March 28 that Ottawa should let the provinces pursue their own approaches to carbon-pricing regulations.

As part of the 2018 omnibus budget bill, Ottawa is targeting industries in provinces that fail to adhere to federal standards for carbon pricing (New Brunswick and Saskatchewan) by forcing those emitters to reduce their greenhouse gases by 30 per cent or pay tax on emissions above that threshold. In January 2019, Ottawa will introduce the tax at $20 a tonne, and will reach $50 in 2022.

“We believe the federal carbon pricing backstop is important enough business of government that it should be debated on its own merits and not part of an omnibus budget bill,” Mr. Masterson told the Globe and Mail.

Although currently all petrochemical operations are in provinces that have their own carbon-pricing plans, the worry more broadly is if the standard is applied across the board, the carbon levy would render many of Canada’s refineries uncompetitive compared with U.S. and other foreign competitors.

“The chemistry sector is closely monitoring the federal plan and is committed to helping meet Canada’s and the world’s clean energy challenge,” Mr. Masterson told the Globe and Mail. “Investment is the key to Canada’s transition to a low carbon future and we need to ensure that our chemistry industry remains competitive to thrive and achieve those goals.”

Read the full Globe and Mail article (subscription required) Ottawa to levy tax against polluting industries in non-compliant provinces under planned carbon-pricing regime