Varcoe: Consumer carbon tax under fire from provincial premiers

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What do wind generators as tall because the Calgary Tower, Alberta withdrawing from the Canada Pension Plan and LNG need to do with rising the carbon tax within the nation?

Little or no.

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But, all of them surfaced at a parliamentary committee on Thursday, as Premier Danielle Smith appeared to debate the incoming enhance to the nationwide carbon worth.

The levy will go up by $15 to $80 a tonne on Monday.

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For motorists, it’s going to add about three cents a litre to the worth of gasoline.

The provincial gas tax may also enhance by 4 cents a litre on the identical day as Alberta’s gas rebate disappears — one thing the provincial NDP known as on the province to cancel on Thursday.

Throughout her hour-long digital look, Smith made the purpose the federal carbon tax is hitting the pocketbooks of Albertans battling inflation.

“This isn’t simply reckless. It’s immoral,” she advised the committee.

Smith was the third premier to make the case in opposition to the carbon tax previously two days earlier than a parliamentary committee.

But it surely didn’t take lengthy throughout questioning by MPs from numerous events to veer to different points and agendas: the UCP authorities’s pause on approving new renewable tasks, the Alberta sovereignty act, the talk over the province pulling out of CPP, and the potential for rising Canadian LNG exports.

“What I’d make of it’s that the MPs don’t actually know very a lot in any respect about what any of the provinces are doing to scale back emissions,” Smith stated after the looks.

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“They’ve a lot of preconceived notions, considering that the one resolution is to place a retail carbon tax on individuals, which is, in our view, a punishing tax…

“They’d be much better partnering with us on the issues that we all know will obtain outcomes, like constructing out the hydrogen infrastructure, like serving to us with (growing) small modular reactors, like supporting us in carbon seize and net-zero tasks.”

The appearances by Smith, Saskatchewan’s Scott Moe and New Brunswick’s Blaine Higgs have been a partisan effort by the Conservative premiers to place an intense highlight on an unpopular federal tax — similar to it was when Liberal MPs tried to shift the highlight on to Alberta’s controversial pause on renewable tasks or the CPP.

Honest sufficient.

But, Smith’s level nonetheless holds: the provinces have taken steps to scale back emissions and wish extra federal backing.

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Alberta was the primary province to introduce a carbon worth on heavy industrial emitters, a coverage adopted by Progressive Conservative premier Ed Stelmach in 2007.

Underneath NDP premier Rachel Notley, Alberta agreed to part out coal-fired electrical energy technology by 2030. Coal use will fully disappear within the coming months, six years forward of schedule.

Final 12 months, Alberta lastly adopted a net-zero goal by 2050, though particular particulars are nonetheless underneath growth.

“There isn’t any single strategy to decreasing emissions that works for each a part of the nation,” stated Marla Orenstein, director of the Pure Assets Centre on the Canada West Basis.

“That being stated, we have to be sure that these variations aren’t used as an excuse for both inaction or much less motion in direction of web zero than is required.”

Nonetheless, the carbon tax is deeply unpopular. As housing prices and meals payments proceed to escalate, the tax will dangle overhead like a pinata, ready to be struck.

Prime Minister Justin Trudeau has accused the Conservative premiers of “deceptive Canadians.”

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Earlier within the week, he launched a letter to the premiers, defending the carbon worth and pointing to rebates returned to most Canadians.

“Placing a worth on air pollution is the inspiration of any critical plan to combat local weather change,” Trudeau wrote. “It’s the most effective technique to scale back emissions throughout the nation.”

Many economists agree.

Greater than 340 signed an open letter this week, saying the carbon levy reduces emissions at a decrease value than different measures, and that it has a negligible impact on total inflation.

“In case you put 100 economists in a room, they’re not going to agree on very a lot,” stated College of Alberta power economist Andrew Leach, who signed the letter.

“In case you ask them what’s probably the most cost-effective technique to assault greenhouse fuel emissions, virtually all of them will say carbon pricing.”

In his look on the parliamentary committee on authorities operations and estimates, New Brunswick’s premier talked about decreasing emissions globally and displacing coal by exporting liquified pure fuel (LNG).

“We may ship to Europe and shut down coal vegetation,” Higgs stated. “That’s the plan. Easy.”

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Smith additionally spoke about exporting LNG and hydrogen to Asia to chop emissions in different international locations. She pointed to new decarbonization tasks advancing in Alberta.

These embrace Dow constructing the world’s first net-zero built-in ethylene cracker and derivatives complicated in Fort Saskatchewan — costing $8.9 billion — and Air Product’s new net-zero hydrogen manufacturing and liquefaction facility in northeast Edmonton.

Each tasks tapped into federal and provincial incentives.

But, different proposed carbon seize and storage tasks are ready for last approval of a federal funding tax credit score and guarantees of carbon contracts for distinction.

Liberal MP Yasir Naqvi, who represents Ottawa Centre, pressed Smith about her authorities’s pause on approving renewable tasks, and why it gained’t permit wind generators close to pristine “viewscapes,” whereas drilling rigs can function within the areas.

“They’re not the identical measurement because the Calgary Tower,” she replied.

Leach wish to see provinces take the lead, driving innovation and insurance policies to decrease emissions, however stated the three premiers aren’t making that case for extra stringent motion to deal with local weather change.

Nonetheless, it’s the patron carbon tax squarely underneath hearth at this time.

“That is not a single get together problem … as a result of affordability, value of dwelling, inflation — and the federal government’s roles to play in that — have turn into a poll field query,” stated Michael Solberg, a political strategist and associate with New West Public Affairs.

“There’s loads of blood within the water right here.”

Chris Varcoe is a Calgary Herald columnist.

cvarcoe@postmedia.com

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