Canadian Prime Minister Justin Trudeau on Friday announced that Canada would introduce nationwide carbon pricing in 2018.
Trudeau worked out a deal for the plan, which aims to reduce carbon emissions by putting a price on them, after meeting with the leaders of Canada’s 10 provinces and three territories.
The leaders of two provinces, Manitoba and Saskatchewan, refused to agree to the plan, but it will be imposed on them by the federal government.
“We have a pan-Canadian price on carbon pollution, because we know it is the best way to ensure better clean jobs,” Trudeau said at a news conference. “This is a way for Canada to show leadership.”
Under the plan, all Canadian provinces must have an initial minimum carbon price — set by either a tax on fossil fuels or a cap-and-trade system — of C$10 (US$7.59) per tonne. Over the next five years, the price would rise to C$50 per tonne.
Trudeau acknowledged that the price set by the plan would not be sufficient to meet Canada’s commitments under the Paris climate accord.
As expected, the conservative government in Saskatchewan balked at signing the agreement.
Saskatchewan Premier Brad Wall said that while his province planned to significantly reduce emissions, a carbon price would make its farms, mines and oil industry uncompetitive.
On Friday, he said that was now particularly true if the incoming administration of US president-elect Donald Trump pulled the US out of its carbon reduction commitments.
“Let’s not be naive,” Wall said.
Trudeau dismissed concerns about Canada being at an economic disadvantage relative to the US.
“Canadian climate policies will be set by Canadians, not by whoever happens to be president of the United States,” he said.
US Vice President Joe Biden, who was in Ottawa on Friday, tried to assuage concerns about Trump’s approach to climate issues when he addressed the leaders.
“Regardless of whether the next administration is as aggressive as we’ve been, there’s no way of turning back,” Biden said.
He added that policies that reduced carbon emissions in the US were increasingly the work of state governments or, more frequently, business decisions.
“Many of the trends that have taken hold are no longer government-dependent, they’re market-driven,” Biden said.
The other holdout province, Manitoba, was a surprise. It had previously announced plans to join Ontario and Quebec in a cap-and-trade system linked with California’s.
Manitoba Premier Brian Pallister appeared to be withholding his approval until the federal government agreed to a new formula to calculate financial support for the provinces’ healthcare needs.
Provincial governments operate the public healthcare system, but they rely on federal funds to do so. The level of those payments is a source of national discontent.
When asked why he would not sign, Pallister, a conservative like Wall, cited a long list of healthcare issues in his province that he said require additional federal funding from Trudeau’s Liberal government.
Trudeau earlier said that the federal government would give the provinces the money raised by any federally imposed carbon taxes.
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