Canada introduces price on carbon

The Canadian government has announced a a pan-Canadian policy on climate change including a floor price on carbon beginning in 2018. The Paris agreement commits Canada to a 30 per cent reduction in greenhouse gases from 2005 levels by 2030. The floor price of carbon starts at a minimum of $10 per tonne of GHG emissions in 2018, rising by $10 each year to $50 per tonne by 2022. All of the money raised will be returned to the respective provinces, who can, in turn, distribute those funds to their citizens in the form of tax cuts. The federal program will be compatible with existing provincial carbon pricing programs. Ontario and Quebec already have a cap-and-trade program. British Columbia already has a carbon tax of $30 per tonne. Alberta has announced it will have a $20 per tonne carbon tax beginning in 2017, rising to $30 a tonne in 2018. Eight of ten provinces have signed onto the agreement. The federal government said it will impose a carbon price on the two non-signatory jurisdictions, Saskatchewan and Manitoba. The final agreement includes a list of already announced measures including new building codes to improve building energy efficiency, more charging stations for electric cars, expanding clean electricity sources and upgrading power grids. CBC