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Federal Government Unveils Long Awaited Carbon Tax To Address Climate Change

Prime Minister Justin Trudeau will unveil Tuesday the federal government's long promised carbon tax on greenhouse gas emissions as part of a larger effort to tackle climate change.

On Tuesday, Prime Minister Trudeau will reveal exactly how Ottawa will go about implementing a carbon tax — or, as the government calls it, a "price on pollution." The federal government has pledged to implement the carbon tax in provinces that do not have a tax of their own, or a cap-and-trade system.

CBC News reported that a national carbon tax will be imposed on Ontario, New Brunswick, Saskatchewan and Manitoba. Prince Edward Island is expected to see a blended program, with the federal carbon tax imposed on large greenhouse gas emitters that operate in Canada’s smallest province.

Other provincial programs were assessed by Ottawa and deemed to be adequate. Roughly 47% of Canadians live in provinces that have said they will not follow through on the national climate framework. Prime Minister Trudeau has said that the tax will start at a minimum of $10 a tonne of carbon dioxide in 2019, rising by $10 each year to a maximum amount of $50 a tonne by 2022.

Government officials in Ottawa have stated that the carbon tax will be revenue-neutral for the federal government, with any revenues collected by the system staying in the province or territory where they are generated.

Liberal cabinet ministers will travel across the country in coming weeks to sell the climate plan to Canadians. Ottawa plans to mail out rebate cheques to compensate people in provinces without a plan. The cheques are meant to offset some of the added costs the carbon tax will impose on goods such as gasoline and natural gas.