Sustainability Prosperity, a not for profit organization providing research, policy proposals, and educational information on environmental pricing reform, has recently published a report on “Eight principles for pricing carbon“. According to the website, these eight principles are:
- Comprehensive: across all sources and sizes of emissions with no exemptions
- Nation-wide: a federal framework is needed to establish a minimum carbon price across the country.
- Simple and readily implemented: avoiding complex rules and exemptions, and with a short lead time to come into effect.
- Transparent and accountable: to ensure its integrity, any new policy must be accompanied by a clear analysis of its expected economic and environmental effects, including a clear accounting of amount and use of any revenues raised.
- Complemented by other measures such as improving the efficiency of vehicles, homes and appliances, and promoting technology research and development where a price signal alone is insufficient.
- Environmentally effective in meeting the jurisdiction’s medium and long-term emissions reduction targets
- Ultimately comparable to carbon prices in other countries
- Predictable but adaptable to provide investment certainty but respond to changing scientific knowledge, international agreements, or unanticipated emissions reduction responses.
I haven’t read through
the report in detail but what’s interesting is that they have applied the eight principles to current policies in Canada. The results? They concluded that BC’s current carbon tax system is the best policy in Canada; you can read the scorecard of policies in Canada
here. Well we know there are a lot more work to do to get the carbon system right and operational (tax plus cap and trade), but it’s encouraging to see that BC is ahead in the game!
This is an article on
Globe and Mail which includes interviews with
Stephanie Cairns, director of carbon pricing for Sustainable Prosperity. Although the current report did not rate BC NDP party’s cap-and-trade system, she commented that:
“There’s very little detail in what they released… [but] our score card would rate this as the weakest policy in Canada.”
Ms. Cairns said the NDP plan, to axe the Liberal carbon tax and replace it with a cap-and-trade system, would apply to only about 32 per cent of emissions in the province.
She said a cap-and-trade system, without a tax, could be effective, but it would have to apply far more widely than the NDP has proposed.
“They need to address the other 68 per cent of emissions,” Ms. Cairns said.
And she said the NDP plan, to get rid of the tax and then develop the details of the cap-and-trade policy later, would be destabilizing to business.
I will report again after reading the eight principles in detail and share some thoughts. If you have read it, what are your thoughts??
Metro Vancouver’s 21 mayors have “come together” and agreed unanimously that the BC government should spend some of the carbon tax “revenue” on transit operations. In fact, our mayors think that the BC government should spend exactly $300 Million of the carbon tax. Well, wouldn’t it be nice to just get *free* money from the government?!
I have two main problems with this unanimous decision. First, there is no carbon tax “revenue” under the BC Carbon Tax system…. it is a methodology to shift tax from good tax (i.e. income tax) to bad tax (i.e. pollution tax). This systems works because there is incentive for individuals (persons and companies) to change and thus save money at the end of the day. If the carbon tax collected is to be used in infrastructure, then it’s not revenue neutral, is it?! Secondly, and more importantly, municipalities who have signed up to the BC Climate Action Charter can get the carbon tax that the municipalities have paid back! As of March 31, 2009, 174 municipalities have signed up to this charter and I’m pretty sure that all 12 cities in Metro Vancouver are onboard. How about pooling this amount of money for the transit system for Metro Vancouver? I should look up how much “tax return” each municipality gets!
When times are difficult like now, it’s a challenge to spend money, municipalities included! But why should we, as individuals who have changed our behaviours (willingly or not) and expecting a tax return be told that our mayors have unanimously decided that it’s fine to change the system? That’s what I disagree….
I like this article, written by a few gurus of the climate change experts in Canada, and published on the Vancouver Sun last week. It’s a pretty easy read with loads of great information. Most importnatly, it’s great to see postive articles about carbon tax, especially at election time. It’s crucial to understand current policies regarding to carbon tax and (eventual) cap and trade systems that we will have in BC, and it’s crucial to understand these policies to make an informed decision for BC, whatever your decision might be.
They commented that to ultimately get to a zero carbon economy, three most important steps are:
- energy efficiency and conservation;
- renewable energy; and
- price on carbon.
Energy Efficiency - reduce energy consumption through increasing energy efficiency. Luckily as wasteful as we are in Canada, we have lots of opportunities to increase energy efficiency. But these come with a price tag: we pay to become more energy efficient!
Renewable energy - whenever possible, consider renewable energy options. ”Renewable Energy” does not need to be as sexy as wind turbines or solar panels. Whenever we can reduce “engineered” resources it’s great. rain water collection is a great example.
Price on carbon - Yes, we need to put a price on carbon; and it will cost us! Through the carbon neutral tax and a cap-and-trade system that is in the plan, this integrated system will allow us to move towards a carbon neutral community. And don’t forget that in addition to paying for carbon, there’ll also be business cases to be involved in this area! Money doesn’t just disappear (well, maybe they do), if we’re paying for energy efficiency, renewable energy, and carbon, then this amount of money could be used to feed back to the system!
The authors:
- Guy Dauncey is president of the B.C. Sustainable Energy Association;
- Will Horter is executive director of the Dogwood Initiative;
- Merran Smith is climate director with ForestEthics; Tzeporah
- Berman is executive director of PowerUP Canada;
- Michele Patterson is acting vice-president, WWF-Canada — Pacific Region;
- Ian Gill is president of Ecotrust Canada, and Greg Gowe is a staff lawyer at West Coast Environmental Law Association.
With the BC provincial election approaching, I’m a bit surprised that we haven’t heard too much about the BC carbon tax lately. I do a quick news search every day or two on Google and I hardly see anything interesting about the BC carbon tax. Today I found Clark Williams-Derry (director of Sightline Institute) of Seattle, who wrote this commentary published on the current issue of Georgia Straight discussing that the hybrid system of carbon tax plus a cap and trade system is the best solution.
A hybrid system—a tax plus a cap—would provide some predictability about prices, as well as a firm guarantee that we’ll meet our climate goals. The tax keeps the system moving forward, continually improving our performance. And the cap is like a sturdy guardrail that keeps us on the road to success, making sure that we make steady, secure progress in creating a climate-friendly economy.
This makes sense and this hybrid system will exactly be the system that BC is going to have! The carbon tax will always be around, and the cap and trade system will come in to get the carbon that is not taxed, typically from process fuel from large emitters.
I’m excited about seeing how this hybrid system will work in BC, and i have no doubt that it will.
If you’re a carbon tax or a carbon cap and trade system supporter, are you in for a hybrid system?
I read this article last night, and this is the type of articles that makes me a bit…eh, annoyed.
“We oppose the carbon tax. We are convinced it doesn’t do a thing to reduce carbon emissions,” said David D. Hull, executive director of the Abbotsford Chamber of Commerce.
In the same article, he also praises the lowered business tax:
Small business got a giant helping hand from the province in October. After dropping the corporate tax rate on the first $400,000 of small business income to 3.5 per cent in July, Victoria slashed it again to 2.5 per cent, effective Dec. 1 …… ”We’re one of the best jurisdictions in North America for business tax, and we’re just getting better,” said Hull.
“We see those steps as a long-term positive for the province of British Columbia.”
Well… Mr. Hull, have you read the BC 2008 Budget? The small business corporate tax reduction is the result of the “revenue neutral carbon tax”!!!
Do you know of any other articles like this?? Please send them my way….
BC Carbon Tax | flo | 
April 30, 2009 12:30 am | 
Comments (0) 
Subscribe