Saskatchewan, Ottawa carbon tax case ‘monumental’ for Constitution: expert

REGINA — Legal experts, government officials and industry leaders will all watch this week as Saskatchewan and Ottawa head to court over the constitutionality of a federally imposed carbon tax.

The federal government is set to impose a carbon levy on provinces that do not have one of their own starting in April.

Ottawa’s price on pollution starts at a minimum of $20 a tonne and rises $10 annually until 2022.

The Saskatchewan Party government has always been opposed to the idea. The province says the tax would hurt the economy and feels its own plan for emissions reductions is sufficient. SOURCE

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Sask. government carbon plan won’t add up to enough emissions reductions

POLL: Most people disagree with Premier Ford on whether carbon tax will cause a recession

 

When Ontario Premier Doug Ford claimed the federal government’s carbon tax would cause a recession in Ontario, many economists disagreed. And it seems most regular people do as well.

According to the first in a series of Clean Energy Canada / Abacus Data nationwide polls:

  • Few Canadians (19%) expect a recession next year. If there were to be one, most (63%) say it would likely have more to do with global economic trends than domestic policies.
  • When told Premier Ford warned the federal carbon tax would cause a recession in Ontario, almost two out of three across the country (64%), and in Ontario (63%), disagreed, believing he was overstating the impact.
  • When respondents were presented with a question which noted that many economists had offered a contrary view, namely that the impact of the tax would be too small to cause a recession, even more people (73% in Ontario, 74% across Canada) rejected Mr. Ford’s contention.

SOURCE

The False Choice Between Economic Growth and Combatting Climate Change

Last year, the U.S.’s carbon-dioxide emissions increased by an estimated 3.4 per cent, the second-largest gain in the past two decades.  Photograph by Fernando Moleres / Panos Pictures / Redux
In 1974, the economist William Nordhaus described the transition from a “cowboy economy” to a “spaceship economy.” In the former, he wrote, “we could afford to use our resources profligately,” and “the environment could be used as a sink without becoming fouled.” But, in the spaceship economy, “great attention must be paid to the sources of life and to the dumps where our refuse is piled.” He added, “Things which have traditionally been treated as free goods—air, water, quiet, natural beauty—must now be treated with the same care as other scarce goods.”
 “It’s absolutely the case that emissions and growth can be decoupled,” Marshall Burke, an assistant professor in Stanford University’s Department of Earth System Science, told me.
“But the switch to nuclear and renewables needs to happen more rapidly. “It takes policy. It won’t happen through markets alone.”
As a small but growing coalition of congressional Democrats, led by Representative Alexandria Ocasio-Cortez, have outlined as part of their Green New Deal, transforming the energy sector—and, really, the entire economy, in a just and more equitable way—will require some sort of carbon tax (preferably a “fee and dividend” approach, which distributes tax revenues as rebates directly to citizens), and also new regulations and huge investments. “We can decarbonize the electric sector at a fairly low cost….That’s where some of the cheapest emissions reductions are to be found. Extensive government subsidies could hasten the spread of renewables—specifically, solar, wind, and batteries—and offset any rise in emissions elsewhere….There are ways to reduce the use of fossil fuels in heating; utilities, for instance, can create incentive programs so that homeowners have a motivation to replace their boilers with electric heat pumps. MORE

As the carbon tax debate heats up in Ottawa, Canada should look to B.C.

‘At partisan times like these that we must remind ourselves that when it comes to climate policy—like climate science—we can choose what we listen to and broadcast: evidence and expertise or political soundbites.’

Prime Minister Justin Trudeau meets with B.C. Premier John Horgan in Vancouver in 2017. PMO Photo by Adam Scotti.

As one factually dubious claim after the other continues to make headlines, an entire decade of real-world evidence from B.C. is sitting on the shelf collecting dust.

And so it is at partisan times like these that we must remind ourselves that when it comes to climate policy — like climate science — we can choose what we listen to and broadcast: evidence and expertise or political sound bites.

Because there is independent research, and plenty of it. There’s the research that found that B.C.’s revenue-neutral carbon tax has cut emissions by 5 to 15 per cent from what they would be otherwise. There’s also the research that says B.C.’s tax demonstrably reduced gasoline demand as well as natural gas use — and actually increased employment. MORE

Economists cool to Doug Ford’s warning of ‘carbon tax recession’

Latest Bank of Canada statement on major risks to the economy in 2019 doesn’t mention carbon tax

In a speech to the Economic Club of Canada, Ontario Premier Doug Ford warned of a ‘very, very real’ risk that the federal government’s carbon tax will trigger a recession. (Radio-Canada)

“A carbon tax will be a total economic disaster,” Ford told the estimated 1,000 paying guests at the lunchtime event in downtown Toronto on Monday.

Asked by CBC News for clarification, Ford’s press secretary pointed to a study by the Conference Board of Canada that suggests a federally imposed carbon tax would shrink the nation’s economy by $3 billion. While that sounds like a big number, it is only a fraction of a per cent of the country’s $2.1 trillion GDP.

“Our analysis suggests the economy will shrink marginally in response to the carbon tax,” the authors said. “While the overall economic impact is small, the distribution is not equal across sectors, with some industries bearing notable costs.” The report does not say that the carbon tax will cause a recession. Nor do other economists.  MORE

 

 

 

INTERNATIONAL CLIMATE ACTION MUST INCLUDE LIMITS ON FOSSIL FUEL SUPPLY

“Efforts to reduce demand for fossil fuels are helping, but it is now quite clear that demand-side actions to reduce greenhouse gas emissions are not enough,” Le Billon and Kristoffersen noted last week, as negotiations in Katowice, Poland reached a crescendo.

“Increasing carbon taxation on consumers has been relatively effective, but carbon taxes are facing increasing political resistance and can lead to a major backlash, as we are seeing with France’s current fuel riots. While the shift to renewable energy is gaining momentum, it is too slow. Per capita demand for energy has also been on the decline in the U.S. and many European countries for the past decade, but major new energy consumers such as China and India will take time to follow suit. As the Intergovernmental Panel on Climate Change (IPCC) recently pointed out, the current transition is still too slow to meet climate change targets.” MORE