The Paris climate accord: Canada must set ambitious goals by pricing carbon nationally

WAKEFIELD, QUE.—When the United Nations COP21 meets in Paris on Nov. 30, there is hope that the global community will move firmly to reduce the enormous risks associated with greenhouse gas emissions. The good news is that an agreement is expected to significantly reduce greenhouse gas emissions, with 129 countries having submitted national targets. There is also hope for a legally-binding agreement. And, in Canada, after a decade-long stalemate, the federal and provincial governments are working together on what Canada’s new Foreign Affairs Minister, Stéphane Dion, calls “the worst threat” of this century. The new era began with last week’s brief first ministers’ meeting and Prime Minister Justin Trudeau’s inclusion of the premiers and opposition party leaders in Canada’s delegation to COP 21. However, even if all 129 countries meet their pledges, the world will still fall woefully short of the emissions reductions needed to stay within the 2 degrees Celsius threshold of global warming scientists say is manageable. Canada’s targets from the previous government are weak, with no credible national plan to meet them, although PM Trudeau promises one early in the new year. Future climate stabilization depends upon concerted action now to quickly transition to green energy systems, and to strengthening of commitments and actions by Canada and other nations, with the goal of phasing out CO2 emissions from fossil fuels by 2050. A crucial policy action to promote this transition is to put a national price on carbon pollution. Rising support for carbon pricing in Canada is apparent from a declaration by groups, ranging from economists and environmentalists, to corporate leaders, health professionals, and religious leaders. A recent study by Canada’s Ecofiscal Commission found that at a carbon price of $30 a tonne, less than five percent of the overall Canadian economy would be exposed to competitive pressures. Four provinces have made significant starts on carbon pricing, led by British Columbia’s successful revenue neutral carbon tax on fossil fuels. Introduced in 2008, it has significantly reduced emissions and stimulated investment in clean technology, without hurting economic growth. A recent analysis by Clean Energy Canada indicates that an even higher tax will further stimulate growth, jobs and innovation while reducing CO2 emissions. Quebec, recently joined by Ontario, has opted for a cap and trade approach linked with California and other sub-national entities, with as yet unknown outcomes. Last week, following wide consultation, Alberta Premier Rachel Notley announced a universal, revenue neutral carbon tax for Alberta in 2017. These initiatives are very positive. Still, the federal government must sign any international agreement, and deal with climate change effects including international security and weather disasters. Its leadership is crucial to ensure an efficient national plan that responds to Canada’s diverse regions and is fair to all citizens. A national “carbon fee and dividend” approach, with a rising price on CO2 emissions, integrated with provincial carbon pricing mechanisms and coupled with rebates to households and tariffs on imports, can provide the economic incentive to drive the emissions reductions needed to ward off catastrophic climate change while stimulating the economy. It can also serve as the carbon pricing policy for provinces without one. • A pollution fee is placed on carbon-based fuels at their source (well, mine or port of entry). • This fee increases steadily each year to gradually internalize the real cost of fossil fuel pollution to society, achieving a level playing field for clean energy within a decade. • All revenues collected are returned equitably to Canadians as a dividend, with most Canadians gaining or breaking even in terms of their increased energy costs, thus protecting the poor and middle class. • A predictably increasing carbon fee sends a clear market signal to entrepreneurs and investors in the new, clean-energy economy, with accompanying growth in long-term, high-skill jobs. • Border tariffs on goods from countries without equivalent carbon pricing policies are applied, thus protecting Canadian industries. Because of its transparency, administrative simplicity, protection of those most vulnerable to rising energy prices, and the direct link between consumers’ carbon footprint and their increased costs, a carbon fee and dividend approach should be attractive to the federal government and to provinces and territories which don’t have effective carbon pricing, while relatively easy to link with distinct provincial systems based on emissions targets. Mari Wesche is a grandmother, climate activist and retired University of Ottawa professor who lives in the Gatineau Hills. She is group leader of Citizen Climate Lobby Canada’s national capital regional chapter. The Hill Times

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The Paris climate accord: Canada must set ambitious goals by pricing carbon nationally

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