Canada needs carbon levy for big emitters, Alberta premier says

OTTAWA — Alberta Premier Alison Redford says the federal government should follow her province’s lead of introducing a carbon price on greenhouse gas emissions for large industrial emitters — as long as it improves environmental outcomes and is not a publicity stunt.

In an interview Monday with Postmedia News, Redford also said the Obama administration’s looming decision over the Keystone XL oilsands pipeline will have long- term implications on the Canada- U. S. relationship.

She also scolded federal NDP leader Tom Mulcair for spreading what she said are “mistruths” and betraying Canada’s long- term economic interests during his visit last week to the United States.

On the environment, Redford said she would like to see the federal government adopt a strategy similar to Alberta’s $ 15- per- tonne carbon levy on large industrial emitters that are unable to meet their greenhouse- gas reduction targets, with the cash then used to improve environmental outcomes.

“We think that’s the right approach,” Redford said, when asked whether Ottawa should introduce a federal carbon levy on large emitters.

Alberta’s carbon tax of sorts has generated more than $ 300 million for a technology fund used to green operations and improve environmental performance.

“The federal government needs to be supportive of that policy ( setting a carbon price) in areas where it can actually make a difference to the outcome. Simply symbolically setting a price doesn’t actually achieve an outcome,” she added.

Federal Environment Minister Peter Kent said recently the government is in the final stages of drafting greenhouse gas regulations for the oil and gas industry and that they could be released by mid- 2013.

The regulations are critical for helping Canada meet its environmental commitments of cutting greenhouse gas emissions 17 per cent from 2005 levels by 2020.

However, the federal Conservative government fiercely opposes any sort of carbon tax — insisting it would cripple the Canadian economy — despite previously endorsing a capandtrade plan.

Redford, however, doesn’t believe a widespread cap- andtrade emissions reductions scheme is necessary or the best approach.

“The goal is not to do something as a PR stunt; it’s to actually do something that is going to make a difference to outcomes. It can be a price on carbon, it can be work on consumer policies, energy efficiency, dealing with greening the ( electricity) grid, that kind of thing,” she said.

Alberta’s climate- change plan sees large emitters that can’t meet their greenhouse gas intensity targets ( emissions per unit of energy) pay $ 15 per tonne of emissions over the target into a green technology fund.

Companies can also green their operations, buy Albertabased offset credits or purchase performance credits from companies going beyond their GHG reduction targets.

The levy has generated $ 312 million for the clean technology fund, with $ 181 million committed to 49 projects.

The Alberta government recently admitted, though, it likely won’t meet its broader greenhouse- gas reduction targets.

Oil and gas companies in Canada have long been preparing for a price on carbon dioxide emissions — be it through a direct carbon tax, cap- andtrade plan or regulations on the industry — and already incorporate anticipated carbon pricing into their major business decisions.