Smart Carbon Tax for Canada’s West Coast
On February 19 British Columbia announced an escalating carbon tax on most fossil fuels, designed to ignite an environmental social movement in B.C. and across Canada to fight climate change – a bold move in the current incoherent muddle of provincial policies on the most pressing problem facing the planet. The blame for this rests squarely with Prime Minister Stephen Harper’s government, which has yet to take any concrete action or demonstrate real leadership on the issue.
Finance Minister Carole Taylor is also handing out $100 to each British Columbian as seed money to get them thinking green. She said the B.C. government has decided to tackle the climate change issue despite concerns from Ottawa about patchwork green solutions that include carbon taxes and cap-and-trade emissions deals like the one British Columbia and other provinces are exploring, including an agreement with California and five other western US states.
An editorial in the Toronto Star emphasized that this highlighted the degree of disarray in Canada over global warming. B.C.’s new carbon tax comes only weeks after Premier Ed Stelmach of neighbouring Alberta (source of almost one-third of Canada’s greenhouse gas emissions) walked out of a premiers’ meeting convened to discuss climate change.
Quebec introduced a form of carbon tax last year but the revenues return to government green technology initiatives, not taxpayers. Taylor said the B.C. carbon tax is "among the broadest and most comprehensive taxes of its kind in the world.”
Carbon Tax:
-Beginning July 1, 2008, British Columbia will begin phasing in a carbon tax on all fossil fuels including gasoline, diesel, natural gas, coal, propane and home heating fuel.
-The rate starts at $10 per tonne of carbon-equivalent emissions and will rise by $5 per year for the next four years.
-As of July 1, there will be a 2.41-cent increase per litre in gasoline. By 2012, it will be 7.24 cents per litre.
-For diesel and home heating oil, it works out to 2.2 cents per litre, rising to 8.27 cents by 2012.
-The tax will generate about $1.85 billion over three years.
-Two thirds of the money raised in the first year will come from business.
-The tax is to be revenue neutral and none of the money raised through the carbon tax will go toward program spending.
-Legislation will require a plan to be tabled in the legislature each year showing how the carbon-tax revenue will be returned to businesses and individuals.
Photo Credit: Flickr Ruth and Dave

