Provincial governments should make their own decisions about putting a price on carbon pollution and not wait for the federal government to act, says a new report by Canada's Ecofiscal Commission.
The report says putting a price on carbon emissions is the most practical way to reduce greenhouse gas emissions linked to climate change and Canada can't afford to dither about which level of government is going to take the lead.
The commission members include a wide range of economists, former political leaders, academics and business people from all political stripes. Its mandate is to take a non-political approach to big policy issues in Canada.
Its newest report, The Way Forward, points out that some provincial governments are already taking steps to reduce carbon pollution.
For example, B.C. has had a carbon tax since 2008, and Alberta prices carbon and makes big companies cut emissions and pay into a technology fund if they don't. Quebec has linked its cap-and-trade system with California's, and Ontario is expected to announce its carbon plan soon.
The report says action by the provinces will work the best.
The report concludes that putting a price on carbon emissions could help the economy, because revenues earned from taxing pollution could be directed back into provincial economies.
Carbon pricing is a controversial political issue that could pop up during the upcoming federal election.
The federal Conservative government has resisted putting a price on carbon, saying it will result in "a tax on everything." Instead, it's bringing in regulations to control emissions sector by sector.
That approach has drawn criticism, because, after years of promises, Ottawa has yet to impose rules on the industry that produces the most greenhouse gases — the oil and gas sector.
Related Stories
