Justin and Leo need a carbon copy campaign
LEO Varadkar isn’t the only one struggling to implement carbon tax reform – it is shaping up to become a key political battleground for his ally, Canadian prime minister Justin Trudeau.
This year Mr Trudeau’s government will begin rolling out measures that will track carbon emissions from major industries and introduce a minimum tax in provinces that don’t introduce their own levies.
A tax on fuel will follow on April 1, but the government wants the revenue raised from businesses to reward their citizens.
Like the Taoiseach, Mr Trudeau is keen to protect consumers from the financial impact of the tax, and has promised that the money Canadians pay through levies will eventually return to them as rebates, or tax refunds. Forbes reports that in some cases, Canadians will receive more in rebates than they will actually pay in taxes. While the average household in Ontario will forfeit an additional Can$244 (€156), they may get up to Can$300 (€192) in return.
This presents a problem because while it helps Mr Trudeau to sell the tax hike to his citizens, it does little to incentivise them to change their behaviour and choose greener alternatives.
With a Canadian election on the horizon in October, the issue presents a challenge for Mr Trudeau.
Carbon pricing is already expected to be a key campaign issue, and Conservatives in the opposition are pushing heavily against a carbon tax and insisting they would eliminate it entirely.
Mr Trudeau has support from industry, but like Leo Varadkar, he is struggling to find the right balance.