Federal carbon tax favours coal-fired plants, could “diminish” renewables investment, new report says

 

Image result for climate clockAs far as a sustainable energy policy goes, the Liberal’s attempt to square the circle  is doomed to failure: allow tar sands to expand and their emissions to rise; give coal production a pass; meanwhile ship the world’s dirtiest oil to foreign markets via the TransMountain pipeline. But in the real world, it just makes no sense. Still Catherine McKenna, with a straight face , zealously attempts to sell this preposterous program. Meanwhile the doomsday clock keeps ticking as we approach global ecocide

A regulatory proposal introduced in December could ‘diminish’ investment in renewable power in Canada, according to the C.D. Howe Institute

A giant drag line works in the Highvale Coal Mine to feed the nearby Sundance Power Plant near Wabamun, Alberta on Friday, Mar. 21, 2014. JOHN LUCAS/EDMONTON JOURNAL

OTTAWA — The federal carbon tax could favour coal-fired power plants over clean sources like wind and solar in its approach to industrial emissions, a new report says, potentially undermining a central aim of the Liberal government’s policy.

Environment Minister Catherine McKenna released a regulatory proposal in December 2018 that provided details on the heavy emitters portion of the carbon tax, including how levies would be applied to electricity generators. Independent think-tank The C.D. Howe Institute reviewed the proposal and found it would actually give a leg up to higher-intensity emissions like coal and “diminish” investment in renewables, due to a decision to raise a critical threshold on certain producers.

“This is indisputably a carve-out for coal that departs from the principle of an economy-wide carbon price,” said Grant Bishop, who wrote a report on the institute’s findings published Tuesday.

The report could add weight to claims that the federal carbon tax introduced by Prime Minister Justin Trudeau does little to target high-intensity industrial emissions. It could also have an impact on coal-related emissions in Alberta, which still depends heavily on the fuel source to generate power.

In December, McKenna released a regulatory proposal for the [output-based pricing system]  OBPS that would force coal-fired facilities to pay levies based on a threshold of 800 tonnes per gigawatt hour (GWh), compared with a threshold of 370 tonnes per GWh for natural gas. That higher target effectively provides more space for coal providers to sidestep levies, giving them a comparative advantage over natural gas or even emissions-free energy sources like hydro, wind and solar. MORE

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