Sask. barred from low-carbon fund

The provincial government intends to apply to a $2-billion federal fund for low-carbon projects, even though the federal government has barred Saskatchewan and Manitoba from access.

The Low Carbon Economy Fund is open to provinces and territories that have adopted the Pan-Canadian Framework on Clean Growth and Climate Change, which Saskatchewan and Manitoba have not.

“We will be supporting provinces and territories that have signed up for the plan,” Catherine McKenna, federal minister of Environment and Climate Change, said Thursday.

Saskatchewan Environment Minister Scott Moe called it a “very concerning announcement,” and “not how I think Canadians expect the federal government to operate.”

The province disagrees with the federal government’s plan to implement a carbon tax, which will begin next year at $10 per tonne and increase to $50 by 2022.

Because of that policy disagreement, Moe said the province is being punished.

“We’ll be applying for this fund as well and we expect to be considered for it,” said Moe.

“The important conversation that we need to be having here is, what are we doing to reduce our emissions?”

According to a Conference Board of Canada report using 2013 data, Saskatchewan was worst in Canada for per-capita CO2 emissions, at 67.6 tonnes per capita. The national average was 20.65.

Considering actual emissions, 2015 data from the federal government put Saskatchewan (at 75 megatonnes) behind Alberta (274.1), Ontario (166.2) and Quebec (80.1).

Moe said the Saskatchewan government has emissions-reducing operations in the works, including zero-till agriculture on pastures, easements on grasslands, and the 4R approach that promotes sustainable farming.

He also pointed to the $1.5-billion Boundary Dam carbon capture and storage facility near Estevan. He said the province’s goal is to have 50-per-cent renewable electricity, which will ultimately reduce emissions in that sector by 40 per cent.

“It’s likely one of the most aggressive shifts in the nation of Canada as we speak,” said Moe.

The Low Carbon Economy Fund will consider projects that reduce emissions, create jobs, reduce pollution and create healthier communities.

Moe said the province would not agree with a carbon tax, even to have access to this fund.

He said a carbon tax would hurt the province’s economy more than this funding could help.

If provinces don’t voluntarily implement the tax, the federal government will do it for them. Carbon tax revenue will remain in the province where it was collected.

The province is planning to sue the federal government.

Canada’s goal is to reduce emissions to 30 per cent below 2005 levels by 2030.

“We’re certainly working very hard with Saskatchewan and Manitoba and are very hopeful that they’ll sign up to the pan-Canadian plan on climate change,” McKenna said.

“But let’s be clear, all provinces and territories agreed in the Vancouver declaration with the prime minister that we needed to have a credible plan with serious actions that would meet our international obligations.” with files from Mia Rabson,

The Canadian Press, and D.C. Fraser, Leader-Post amartin@postmedia.com twitter.com/LPAshleyM