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BC VIEWS: Premiers do the carbon shuffle

Prime Minister Justin Trudeau declares victory, George W. Bush-style, as premiers reject his promised national carbon price
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Premier Christy Clark and Prime Minister Justin Trudeau attend first ministers' meeting in Vancouver last week.

Premier Christy Clark had her dancing shoes on as yet another ѻýclimate changeѻý meeting ended in disarray in Vancouver last week.

ѻýThis is not the end,ѻý Clark assured reporters after Prime Minister Justin Trudeau and the premiers emerged with no agreement on a national minimum carbon price. No kidding.

Trudeau declared victory by announcing the unanimous consent to a ѻýVancouver Declaration,ѻý which basically pays lip service to the concept of ѻýcarbon pricingѻý and kicks another grand federal election promise down the road.

[Vancouver Declaration . Its first promise is to "increase the level of ambition." No kidding.]

As the rest headed for jets waiting at Vancouver airport, Clark expressed the hope that the public would say ѻýthey got together and they made progress.ѻý Did they? Letѻýs take a look.

Going into the Whistler-Vancouver stop on Trudeauѻýs globe-trotting glamour tour, Clark correctly noted that itѻýs other provinces that need to make progress. B.C. has a clear price on carbon emissions; itѻýs been held at $30 a tonne since Clark succeeded its creator, Gordon Campbell.

Clarkѻýs advice for other premiers is to follow Campbellѻýs example of a revenue-neutral carbon tax, offset by income tax reductions. You wonѻýt build public support for a carbon tax that makes people poorer, she said.

Of course thatѻýs what Alberta is doing, at a time when many residents are getting poorer already. Albertaѻýs NDP government plans to match the rate of B.C.ѻýs carbon tax within two years and spend the proceeds.

Other premiers have more creative definitions for pricing carbon.

Nova Scotia Premier Stephen McNeil pointed to transmission lines and power purchases from the Muskrat Falls dam under construction in Labrador, to substitute hydro for coal-fired power. The highest electricity prices in Canada are their ѻýcarbon pricingѻý plan.

Saskatchewan Premier Brad Wall pointed to SaskPowerѻýs Boundary Dam carbon capture and storage project. It is the worldѻýs first coal-fired power station to capture carbon dioxide after combustion. The CO2 is sold to oilfield operators who inject it into declining wells to push more oil out, and the project intends to capture sulphur dioxide and fly ash to process and sell for other industrial uses.

Wall is the only Canadian leader to state a couple of inconvenient truths. The purpose of this exercise is to reduce carbon emissions, not to raise tax revenues. And now is the worst possible time to impose more taxes on the oil and gas industry.

Clarkѻýs stand-pat strategy on the B.C. carbon tax is going to change this year, as positioning begins for the 2017 election. A B.C. government advisory panel has recommended a 33 per cent increase, conveniently starting in 2018, with annual increases after that.

The current seven-cent-per-litre carbon tax on gasoline sold in B.C. is hardly a deterrent these days, as pump prices have tumbled and could stay low for years to come. And with a fragile economy, it seems unlikely that a big boost in carbon taxes will find favour with voters a year from now.

The B.C. NDP is trying to rebuild its credibility on climate policy. NDP leader John Horgan tried to revise the partyѻýs history, claiming in year-end interviews that the NDP didnѻýt oppose the carbon tax, only making it revenue neutral rather than spending the money on green initiatives, as Alberta wants to do.

Alas, the NDPѻýs ѻýaxe the taxѻý campaign going into the 2009 election is a matter of record. The partyѻýs election platform warned that Campbellѻýs plan ѻýincreases taxes for average families by tripling the gas taxѻý to its current level.

Last week the NDP issued a news release denouncing Clark for presiding over increasing greenhouse gas emissions.

Tom Fletcher is B.C. legislature reporter and columnist for Black Press. Email: tfletcher@blackpress.ca Twitter: @tomfletcherbc

 





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