Feds mum on carbon tax revenue

Sask. minister suspects citizens will cough up $2.5 billion a year

The federal government isn’t releasing how much revenue could be generated from a carbon tax imposed on Saskatchewan.

An access to information file obtained by the Leader-Post contains a graph titled: “Calculation of revenue from a $50/tonne carbon tax in 2022.”

It includes columns for how many megatons of emissions would be taxed, the percentage of emissions covered by the Liberal government’s proposed plans and one for projected revenues.

But the information within that graph is redacted and not made publicly available.

Scott Moe, Saskatchewan’s Environment Minister, said the province’s own estimates show a federally-imposed carbon tax would move roughly $2.5 billion from provincial residents and industries into provincial coffers.

Saskatchewan remains opposed to a carbon tax, including one that would be imposed by the federal government.

Premier Brad Wall has pledged that, if need be, he’ll take the federal Liberal government to court over that matter, but that hasn’t slowed Ottawa from putting forward its backstop plan of what kind of carbon pricing scheme it would put in place for Saskatchewan.

That plan would see a “floor price” of $10 a tonne on carbon pollution established in 2018, with the price rising to $50 in 2022.

“Now that the backstop is in place, we’re obviously looking at that,” said Moe. “We’re not looking at that from the perspective of implementing it, but we have looked at it from the perspective of what that may or may not cost Saskatchewan people, and our estimates are close in that region of $2.5 billion, depending on some of the specifics of how that would be implemented.”

Federal Environment Minister Catherine McKenna’s office said in a statement that all revenue from pricing pollution goes back into the province or territory where it is collected.

“Revenues from carbon pricing can be used to lower taxes, support low- and middle-income families, or support innovative green programs that create good jobs, among other options,” said the statement.

Moe and the Sask. Party government contend a carbon tax would have adverse effects on the provincial economy and could lead to carbon-intense industries active in the province packing up to leave for a jurisdiction — likely the United States — without any price on pollution.

“This will affect different regions of the nation differently,” Moe said, adding that includes how much money would be pulled out of the economy and into provincial coffers.

He said the province is currently working with industries active in Saskatchewan to see how carbon emissions can be reduced without having to tax them.

In a report released last week, the provincial auditor was critical of the government because, as of January, there was no provincial target for reducing greenhouse gas emissions.

The auditor said that without plans, policies and targets, Saskatchewan may not be able to fulfil its commitment to Canada to help reduce overall emissions.