`ANOTHER ATTACK'

Ottawa unveils carbon plan

The federal government's decision to ratchet up the carbon tax to $170 a tonne by 2030 is “another attack on Alberta's economy and Alberta's jurisdiction,” Environment Minister Jason Nixon said Friday.

Earlier in the day, Prime Minister Justin Trudeau announced a $15-billion plan to meet Canada's climate change commitments to reducing greenhouse gas emissions by 30 per cent below 2005 levels by 2030 that includes steady increases to its carbon tax in each of the next 10 years.

The federal carbon price, which is currently $30 a tonne, will continue to increase by $10 a tonne until it reaches $50 per tonne in 2022. Trudeau announced increases will carry on and get steeper after that — by $15 a tonne per year.

By 2030, the price is to be $170 tonne — enough, say federal officials, to increase the price of gas at the pump by 27.6 cents per litre.

“The prime minister continues to impose his Ottawa-knows-best attitude on Alberta at a time when Albertans can least afford it,” Nixon said.

Currently, Albertans get their carbon tax rebates when they file their taxes, but under the new system the money will come in quarterly cheques or direct deposit.

Trudeau said most families should get more back than they pay in tax.

Ottawa imposes the carbon tax on jurisdictions that do not implement their own carbon pricing model, including Alberta.

University of Calgary economist Trevor Tombe said the increase in the carbon tax is expected to cost an Alberta family of four $3,200 a year as of 2030 or $1,600 for an individual.

He said using carbon tax as the “heavy lifter” when it comes to climate policy is more efficient than letting government decide how to lower emissions.

“It leaves it to individuals and businesses to decide whether and how to lower emissions, they look at the carbon tax and ask themselves, `Can I do something different to avoid paying this?'” he said.

Tombe said if Alberta chose to create its own carbon tax, the province would be able to use the rebate money as it sees fit, including to pay down the deficit.

“If the government were to take the $170 per tonne and just have a rebate for low-income individuals, structured in line with what British Columbia currently does, for example, then by 2030, it could have four and a half billion dollars towards the provincial budget,” Tombe said.