Canada’s revamped carbon tax for large industrial emitters received some praise Wednesday, but there were also fears the plan could drive up electricity costs for consumers while eroding industry’s ability to compete with global players that don’t face the same levies.
The NDP government on Wednesday formally unveiled its plans to reboot the carbon levy for big industry, which now faces up to $1.2 billion in carbon costs by 2020.
The plan applies to over 100 companies that are among the province’s largest emitters, from oilsands operators and pulp mills to fertilizer plants and cement makers.
The system is designed to reward low emitters and punish more emissions-heavy operations in the hopes that they will improve.
Cenovus Energy called the plan “an important step forward in addressing climate change as it will incent those facilities with the lowest emissions intensity.”
The Calgary-based oil producer, which has previously backed the NDP government’s climate change agenda, declined to say whether it would be rewarded or penalized under the new regime while it reviews the details, but added it will be “well positioned.”
Canadian Natural Resources Ltd., a major oilsands producer, said in a statement the carbon tax plan for big emitters “will impact industry’s competitiveness.”
The company said the changes don’t account for major investments that industry has made in cyclic steam-assisted oilsands production — which generally producer higher emissions — in the Cold Lake and Peace River regions of northern Canada.
These types of projects paid more than 40 per cent of total oilsands royalties last year, according to CNRL, which said its cyclic steam projects paid more than $1.5 billion in royalties in the past five years.
“We must ensure the economic sustainability of (these) projects and protect jobs,” the company said in its statement.
fulls story at http://calgaryherald.com/business/energy/albertas-carbon-tax-on-high-emitters-met-with-praise-concerns-about-power-price-hikes