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B.C. election gives life to carbon tax Campbell victory seen as proof voters accept carbon tax, which covers fuels, coal, natural gas, believing it makes a difference Gary Park For Petroleum News
The election of Gordon Campbell to lead British Columbia for another four years carries weight with climate change advocates through the western region of North America.
The first leader on the continent to impose a carbon tax, Campbell’s victory is seen as clear proof that voters are ready to swallow a tax if they believe it makes a difference to the environment.
For British Columbia, despite pledges by the opposition New Democratic Party to abandon a tax seen as unfair to northern residents, businesses, farmers, ranchers and truckers, the tax has been in place for almost a full year.
It started at 2.41 cents per liter of gasoline, rising progressively to 7.24 cents in 2012, and almost 50 cents per gigajoule for natural gas, building to C$1.50 in 2012. The tax covers gasoline, diesel, natural gas, heating fuel, propane, aviation fuel, kerosene and coal.
But the government also linked the tax to cuts in both personal and corporate tax rates, effectively rendering the tax as revenue neutral.
Basking in the afterglow of the election, Campbell told reporters “there’s an important message that (the tax) doesn’t mean the end of your political mandate.”
Regardless of reports that some cabinet ministers and members of his caucus were either flat-out opposed to the tax, or uneasy about its impact on their political careers, Campbell believes the majority believed that “what we did is important.”
Win could embolden others That importance could embolden other governments in Canada, as well as U.S. members of the Western Climate Initiative, which was formed early in 2007 to combat global warming.
In addition to the Canadian provinces of B.C., Manitoba, Ontario and Quebec, the partners include seven U.S. states — Arizona, California, Montana, New Mexico, Oregon, Utah and Washington. Alaska is one of six states listed as an observer, along with five states in Mexico and Saskatchewan. Notably absent is Alberta, a resolute foe of cap-and-trade.
The WCI is trying to figure out ways to collectively reduce greenhouse gas emissions, with partners required to set overall targets and develop a market-based, multisector mechanism to achieve those goals.
It has already rolled out a plan for a cap-and-trade proposal to be launched in 2012, followed by a broader cap on carbon emissions in 2015.
The WCI’s goal is to reduce GHGs by 15 percent from 2005 levels by 2020.
But the concept seemed to take a setback in Canada last year when former Liberal leader Stephane Dion, who called for a carbon tax, was defeated in an election by Prime Minister Stephen Harper.
Ian Bruce, climate change specialist with the David Suzuki Foundation said Campbell’s electoral success is a “watershed moment for action” on climate change in North America.
He said the vote showed British Columbians cared and now expect the Campbell government to deliver a comprehensive action plan on climate change.
Matt Horne, director of the B.C. Energy Solutions Program for the Alberta-based Pembina Institute, said Campbell’s victory is encouraging for any government trying to decide whether to put a price on carbon, adding that the people of British Columbia have conclusively shown they want bold action.
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