British Columbia told to raise carbon tax

OREANDA-NEWS. December 01, 2015. British Columbia should increase its carbon tax by C\\$10/yr (\\$7.49/yr) starting in 2018, according to an expert panel.

The Canadian province should also broaden the scope of the tax to cover "non-combustion sources of carbon emissions that can be accurately measured," the Climate Leadership Team said in a report released on 27 November. The tax currently covers 70pc of the province's emissions.

The province's C\\$30/t revenue-neutral carbon tax is the highest carbon price in North America. It initially increased by C\\$5/yr but has been held at C\\$30/t since 2012. The panel said an increase of C\\$10/yr is needed through 2050 for the province to meet its 80pc emissions reduction target for that year. Raising the tax should be done in tandem with reductions of other taxes, such as the province's sales tax, the panel said.

The British Columbia government established the Climate Leadership Team, made up of leaders from the business, academic and environmental communities, earlier this year to develop climate policy recommendations.

The team also recommended setting a 2030 greenhouse gas reduction target of 40pc below 2007 levels. Within that overall target, the province should seek a 30pc cut in emissions from transport, 30pc from the industrial sector and 50pc from the built environment below 2015 levels by 2030, the panel said.

The province will act on the recommendations next year after a public consultation process in January.

British Columbia's emissions are concentrated in the industrial and transportation sectors, which have proven more difficult to address. A number of proposed LNG export facilities could raise the province's emissions significantly. Last year, the government said it would require new LNG facilities to meet CO2 limits, allowing them to use carbon offsets for compliance.