Ottawa To Impose Federal Carbon Tax On Alberta January 1

Ottawa will impose its federal carbon tax on Alberta beginning on January 1, 2020.

Federal Environment Minister Catherine McKenna says she has written the province to inform it of the decision taken by the federal government of Prime Minister Justin Trudeau. She said Thursday that 90% of the money collected will go back to Alberta taxpayers in rebates, meaning an average family of four will get $888 returned next year. The remaining 10% will go toward making buildings in the province more energy efficient.

Alberta passed legislation officially repealing its provincial carbon tax last week, after United Conservative Premier Jason Kenney won an April election on a promise to kill it.

"It's unfortunate because Alberta had a made-in-Alberta plan to put a price on pollution and we clearly need Alberta to be part of our national climate plan as Alberta has the highest emissions in the country," said McKenna at a news conference in Ottawa.

Alberta joins four other provinces – New Brunswick, Ontario, Manitoba and Saskatchewan – that have declined to impose their own carbon taxes, leaving Ottawa to impose the federal one.

Kenney has said that if Ottawa imposes its fee, he will join Saskatchewan and Ontario in fighting it in court.