Isra-Mart srl : Energy group calls for carbon tax hike

www.isra-mart.com

Isra-Mart srl news:

The Pembina Institute says British Columbia should increase its trendsetting carbon tax to $200 per tonne of CO2 emissions, equivalent to a 48-cent surcharge in the price of gasoline, if it’s serious about addressing climate change.

Pembina is also suggesting that some revenue from the increased tax, which is now pegged at $20 per tonne or 4.82 cents a litre for gas, should be used to fund projects such as public transit that can reduce B.C.’s overall greenhouse gas emissions.

The B.C. Liberals plan to increase the carbon tax to $30 a tonne by 2012 — but have not yet determined what will happen after the 2012 fiscal year, according to Finance Minister Colin Hansen.

At $200 a tonne, the tax would add about $10 per gigajoule to the price of natural gas. A typical B.C. family uses about 100 gigajoules of gas per year, so the tax would increase annual home heating by about $1,000.

The energy-sector watchdog group proposed the ideas on Wednesday at the launch of a month-long series of public consultations by the select standing committee on finance and government services. Chilliwack MLA John Les is the chair. NDP finance critic Bruce Ralston is also a member.

At present, the B.C. Liberals say the tax is more or less revenue-neutral for government, which has cut other taxes by an amount equivalent to the revenue it annually generates.

“We’d like to see a portion of those revenues go to products that reduce emissions,” Pembina energy solutions director Matt Horne said. “I think on balance that still helps people draw down their [carbon tax] costs. If the projects reduce emissions there is less tax being paid as well.”

Horne acknowledged the institute’s suggestion was likely to spark controversy, but said urgent measures to address climate change are necessary.

“I think it’s a discussion we have to have as British Columbians. All of the [climate trend] modelling I’ve looked at says that if we are going to have some success dealing with climate change we are going to need some big and bold changes. There are going to be some tough discussions but if we are not putting those out there to have at least have that discussion we are not going to get to the best solutions.”

B.C.’s Finance Ministry maintains a three-year outlook in its annual financial and budget documents, so a decision about the tax after 2012 needs to be made within six months, Hansen said in a meeting with The Vancouver Sun editorial board.

Hansen said B.C. is awaiting the outcome of deliberations in California and other states that are planning to establish and participate in a carbon credit trading scheme. That scheme, Hansen said, will determine what happens after 2012 with the carbon tax.

Jock Finlayson, executive vice-president for the Business Council of B.C., said Pembina’s suggestion “is a terrible idea.”

“It would accelerate the de-industrialization of the B.C. economy, kill the natural gas industry, and render both of B.C.’s trade gateways – Vancouver and Prince Rupert – uncompetitive vis-à-vis other west coast gateways,” Finlayson said in an e-mail.

“We are not opposed in principle to using a carbon tax to help mitigate greenhouse gas emissions, but a ‘made in B.C.’ carbon tax that rises continuously over time, and is not matched by similar levies in other jurisdictions, will do far more harm than good.”

The council will be making a presentation to the standing committee next month.

The committee’s Les said the process is “wide open” and the committee welcomes recommendations at its public hearings, via video clips, e-mails, and feedback at its website.

“Everyone should be able to provide their thoughts if that’s what they want to do. In terms of the carbon tax, frankly we are looking for ideas about anything and everything that’s on people’s minds.”