Federal Government Announces Carbon Pricing
October 03rd, 2016
The Federal government announced plans for carbon pricing to being in 2018 for all of Canada. Provinces and territories can choose to either put a direct price on carbon pollution or they can implement a cap-and-trade system. Under the plan, carbon will be priced at a minimum of $10/tonne in 2018 and increase $10/year to reach $50/tonne by 2022. Additionally, provinces and territories will keep the revenue generated from the pricing system and be able to choose how that revenue will be used.
The Province of BC currently sets the price of carbon at $30/tonne. At this price a litre of gas increases by approximately $0.07. A tax in 2022 of $50/tonne would increase a litre of gas by $0.12.