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Federal government rejects Saskatchewan’s plan to replace federal carbon tax, and rolls out stricter rules for provinces


The federal government has rejected Saskatchewan’s plan to replace the federal carbon tax, whereas on the similar time asserting stricter necessities for provinces trying to keep away from the federal carbon pricing system beginning in 2023.

Saskatchewan Premier Scott Moe says the rejection “can only be viewed as an arbitrary and political decision,” in an announcement issued Monday.

Saskatchewan’s submission was “in close alignment with other provincial programs previously accepted,” famous Moe.

The premier was possible referring to New Brunswick’s carbon pricing system, which was permitted by the federal government. New Brunswick’s government applied a 6.6 cent-per-litre carbon levy on gasoline, however lower its fuel tax by greater than 4 cents on the similar time.

Offsetting the carbon tax with decreased gas taxes, as New Brunswick has executed, will not be allowed in accordance to new necessities for provincial carbon pricing revealed by the federal government on Monday.

Setting and Local weather Change Canada says it’s updating the benchmark that provinces have to meet if they need to keep away from the federal carbon backstop for 2023 by means of 2030 in an effort to be certain that the nationwide minimal requirements are “fair, consistent and effective.”

“One type of action that is to be avoided is the provision of instant rebates on fossil energy purchases, for example by reducing specific fuel taxes in order to offset increased carbon prices. This kind of rebate counteracts the incentive to reduce GHG emissions,” says a steering doc revealed by ECCC on July 12.

Any provincial system should cowl the identical proportion of emissions and should not weaken the worth sign versus the federal backstop, in accordance to ECCC. Protections towards carbon leakage — the lack of enterprise to rivals in different nations — should even be restricted to sectors in danger, says the division.

The brand new necessities for provinces coincide with the Liberals’ plan to elevate the federal carbon tax by $15 per tonne of CO2 equal yearly from 2023 by means of 2030.

In accordance to Moe, the federal government indicated it won’t be accepting any additional submissions from provinces till 2023.

“While Saskatchewan will be fully evaluating the federal decision and exploring all avenues possible to protect our residents from the federally imposed carbon tax, we hope that the federal government does not take the same arbitrary and political approach to ongoing areas of federal-provincial negotiation, such as the federal child care funding, which Saskatchewan will continue to pursue,” says Moe.


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