Ottawa and Alberta co-operating on carbon
Minister says draft laws will be out soon
Federal Environment Minister Peter Kent said Wednesday it’s “premature” to talk about Alberta’s proposal to boost its carbon levy on heavy industry, but he insisted the two levels of government remain in close co-operation.
Both Kent and Premier Alison Redford were in Washington, D.C. in separate attempts to promote the environmental records of Canada and Alberta, which are under intense scrutiny as the Obama administration considers whether to approve the proposed Keystone XL oil pipeline.
Alberta has recently presented to the energy industry and federal government what’s been dubbed the “40/40” idea of requiring large industrial operations to cut their per-barrel emissions by 40 per cent over time, and assess a $40-pertonne fee to companies that exceed those limits.
However, the Redford government maintains it is not wedded to an increase or any specific targets.
Kent said the federal Conservative government is working closely with the provinces and energy industry as it develops long-awaited greenhouse gas regulations for the oil and gas sector, but he declined to comment specifically on Alberta’s suggestion.
“It would be premature today to talk about where we are. We hope to have draft (regulations) this year,” he told reporters.
Redford’s two-day trip to the U.S. capital has seen the Tory premier tout Alberta’s existing carbon levy, which has been
… the first thing we need to do is have discussions to figure out what we need to talk about PREMIER ALISON REDFORD
in place since 2008.
The current $15-per-tonne carbon levy on large greenhouse gas emitters — applied to companies that fail to reduce their emissions intensity by 12 per cent below baseline levels — is paid into a fund that invests in green technology initiatives.
Federal Conservative MPs have frequently criticized anything from the federal opposition parties that resembles a price on carbon, calling such schemes “a tax on everything.”
However, Kent said he and Redford are “on the same wavelength, going in the same direction” on the issue.
Redford’s initiatives reflect Ottawa’s willingness to let the provinces decide how they will meet national targets for emissions reductions, Kent said.
The federal government is not against carbon pricing, Kent added. Rather, it is speaking out about schemes that take taxpayers’ money in the name of fighting climate change and put that money into general revenues.
Alberta has acknowledged it won’t meet its own targets to reduce greenhouse gas emissions under its existing climate change strategy.
Redford said Wednesday the province’s review of its 2008 climate change policy is being driven by the fact its existing carbon levy expires in September 2014, as well as by upcoming federal regulations.
The province can’t — and won’t — create its plan in isolation, she said. But Redford reiterated that 40/40 is not “some kind of magic formula” and insisted there are no specifics on the table.
The premier said the discussions with industry and the federal government are part of the normal activities of the government, but suggested there could at some point be public hearings when a formal plan around the levy is developed.
“I don’t think we’re beyond any of that yet, but the first thing we need to do is have discussions to figure out what we need to talk about,” she said in an interview.