Ottawa awaits provinces carbon price plans

McKenna sets a deadline for sometime in 2018 before national pricing imposed

OTTAWA — Environment Minister Catherine McKenna says a national price on carbon won’t be imposed on any province for at least another year.

McKenna says carbon pricing legislation will be introduced sometime in 2018 and provinces will have until the end of that year to submit their own carbon pricing plans before a national price is imposed on those that don’t meet the federal standard.

A year ago, McKenna said provinces would have to impose at least a $10-per-tonne carbon price in 2018 but it appears some provinces will make it all the way to the end of the year before they have to actually do it.

The price has to rise at least $10 per tonne a year until it hits $50 per tonne by 2022.

Alberta and B.C. already meet the threshold and Manitoba intends to introduce a carbon price of $25 next year.

Ontario and Quebec’s cap and trade systems likely meet the threshold but the other provinces either haven’t yet got a plan in place or what they do have doesn’t mesh with Ottawa’s standard.

For example, McKenna is suggesting that New Brunswick’s approach won’t meet Ottawa’s requirements, but Premier Brian Gallant is defending his plan.

The province has released a plan that will see existing gasoline and diesel taxes repurposed for a climate change fund, rather than adding a new carbon tax.

But in a post on her Facebook page, McKenna says without adding a new tax, New Brunswick’s plan does not create a new incentive to cut carbon pollution.