So are Saskatchewan and Alberta going to cancel their industrial large emitters tax system? They have not said so and they are provincially based systems.
And where is the evidence they are 3 times the rate of the consumer carbon tax? My understanding is they are significantly lower in Alberta and Saskatchewan
You can read all about them here:
[url]https://climateinstitute.ca/carbon-pricing-large-emitter-trading-systems-canada/[/url]
Comparing regional systems and features
The federal output-based pricing system (OBPS) applies in Manitoba, Prince Edward Island, Nunavut, and Yukon. It is an intensity-based system that is designed to be applied anywhere in Canada, so it features fewer facility-specific performance standards than many other systems. The revenues from this system are returned to the jurisdiction of origin either by direct transfer or through federal programming.
Alberta’s Technology Innovation and Emissions Reduction (TIER) Regulation is also an intensity-based system and is the largest single LETS in Canada, since Alberta accounts for around 60 per cent of the country’s industrial emissions. Most of the performance standards in TIER are facility-specific, and it has unique mechanisms to further control costs.
Most provinces also have intensity-based LETS. The British Columbia OBPS is notable for relying mainly on sector-wide performance standards, unlike most other systems. The Nova Scotia OBPS and New Brunswick OBPS are similar in many respects, though New Brunswick’s system has some unique provisions for facilities that use biomass for fuel. For more details on these intensity-based systems, including Ontario’s Emissions Performance Standards and Saskatchewan’s OBPS Program, see Table 1.
Quebec’s cap-and-trade system is the only system of its type in Canada. Quebec’s market is integrated with the Western Climate Initiative ([url]https://wci-inc.org/[/url]), which currently includes California (the state of Washington might join ([url]https://ecology.wa.gov/about-us/who-we-are/news/2024-news-stories/mar-20-shared-carbon-market[/url]) in future). This gives large emitters in Quebec access to a trading market even larger than Alberta’s. The liquidity of this market, and the availability of low-cost offsets, have resulted in a lower carbon price in Quebec than elsewhere in Canada.
The Northwest Territories carbon tax for industry is also unique, because it is a fuel levy for industry rather than a trading system. This system reduces costs to large emitters by issuing a rebate that covers a large share of their carbon tax liabilities.
And where is the evidence they are 3 times the rate of the consumer carbon tax? My understanding is they are significantly lower in Alberta and Saskatchewan
You can read all about them here:
[url]https://climateinstitute.ca/carbon-pricing-large-emitter-trading-systems-canada/[/url]
Comparing regional systems and features
The federal output-based pricing system (OBPS) applies in Manitoba, Prince Edward Island, Nunavut, and Yukon. It is an intensity-based system that is designed to be applied anywhere in Canada, so it features fewer facility-specific performance standards than many other systems. The revenues from this system are returned to the jurisdiction of origin either by direct transfer or through federal programming.
Alberta’s Technology Innovation and Emissions Reduction (TIER) Regulation is also an intensity-based system and is the largest single LETS in Canada, since Alberta accounts for around 60 per cent of the country’s industrial emissions. Most of the performance standards in TIER are facility-specific, and it has unique mechanisms to further control costs.
Most provinces also have intensity-based LETS. The British Columbia OBPS is notable for relying mainly on sector-wide performance standards, unlike most other systems. The Nova Scotia OBPS and New Brunswick OBPS are similar in many respects, though New Brunswick’s system has some unique provisions for facilities that use biomass for fuel. For more details on these intensity-based systems, including Ontario’s Emissions Performance Standards and Saskatchewan’s OBPS Program, see Table 1.
Quebec’s cap-and-trade system is the only system of its type in Canada. Quebec’s market is integrated with the Western Climate Initiative ([url]https://wci-inc.org/[/url]), which currently includes California (the state of Washington might join ([url]https://ecology.wa.gov/about-us/who-we-are/news/2024-news-stories/mar-20-shared-carbon-market[/url]) in future). This gives large emitters in Quebec access to a trading market even larger than Alberta’s. The liquidity of this market, and the availability of low-cost offsets, have resulted in a lower carbon price in Quebec than elsewhere in Canada.
The Northwest Territories carbon tax for industry is also unique, because it is a fuel levy for industry rather than a trading system. This system reduces costs to large emitters by issuing a rebate that covers a large share of their carbon tax liabilities.
Comment