Canada agrees on national carbon price, but tensions remain

OTTAWA (Reuters) - The Canadian government on Friday reached a deal with eight of the 10 provinces to introduce a landmark national carbon price, which Prime Minister Justin Trudeau says will help Canada meet its international climate change obligations.

The agreement was only struck after hours of heated talks and energy-producing Saskatchewan did not sign up, saying the measure would make firms uncompetitive at a time when incoming US President Donald Trump looks set to adopt policies cutting energy costs.

In a sign of the tension that remained after the negotiations, Trudeau and Saskatchewan Premier Brad Wall exchanged barbed comments at the closing news conference.

The carbon price is part of a framework that aims to help Canada attain its Paris goal of reducing emissions by 30 percent from 2005 levels by 2030. The measures include boosting the use of renewable energy and investing in clean technologies.

“(This) will both protect our economy and protect the environment at the same time,” Trudeau told reporters.

Under his plan, carbon pollution would cost C$10 ($7.60) a tonne in 2018, rising by C$10 a year until it reaches C$50 in 2022. The provinces can either implement a carbon tax or a cap-and-trade market.

Trudeau is broadly aligned politically with President Barack Obama, who has pushed hard to cut emissions of greenhouse gases.