Alberta launches climate plan

Alberta has introduced legislation to enact its sweeping climate-change plan amid widespread doubts that the government will achieve its most ambitious objectives.

Cleaning up Alberta’s sullied environmental reputation is seen as vital by the New Democratic Party government of Premier Rachel Notley and several energy industry leaders, who are counting on the strategy to attract new investment by putting a greater emphasis on technology to reduce carbon emissions and advance renewable energy supplies.

Environment Minister Shannon Phillips said the plan will “diversify our economy, create new jobs, improve the health of Albertans and erase any doubt about our environmental record. It will also open up new markets for our products.”

Critics argue that the carbon levies on transportation and heating fuels of C$20 a metric ton in 2017 and C$30 in 2018 will only contribute to rising unemployment and a higher cost of all goods for Albertans.

Still to come are other pieces of legislation, notably a limit of 100 million metric tons on annual carbon emissions from the oil sands.

But what troubles opponents most at this time is the decision to issue rebate checks to about 60 percent of Albertans on modest incomes to offset their annual carbon tax.

The direct extra cost of the new taxes on gasoline and heating is estimated at C$338 a year for a couple with two children on a combined income of C$95,000 or less. Those families will receive a check for C$360, although indirect carbon levies are calculated at an additional C$70 to C$105.

In its April budget, the government calculated that it will raise C$9.6 billion through levies on consumers and major carbon emitters over the next five years, though it insisted that money will go only to dedicated uses, such as actions that address climate change, or help small businesses or First Nations.

Greg Clark, leader of the minority Alberta Party, is not convinced that the rebates will persuade people to reduce their carbon output.

“I’m very supportive of climate action,” he said. “But if the incentives aren’t there, why would anybody use (less fossil fuels)? This looks more like a wealth redistribution tax than a carbon tax.”

- GARY PARK