A new provincial climate change strategy from Alberta’s NDP government includes a carbon tax, a phasing out of coal-fired power plants and a legislating of emissions limits from oilsands – and Alberta residents will see their taxes going up as part of the plan.
An average Alberta household will likely see approximately an extra $470 in heating, electricity and transportation costs added to their bills by 2018, though “at least” 60 per cent of households will receive a rebate of those costs, according to Alberta Environment and Parks Minister Shannon Phillips. Gasoline is set to go up by five cents per litre starting 2017.
“Lower income people are lower users of energy. They would essentially come out ahead of average users of energy,” she said.
“There will be a rebate for at least 60 per cent of households. Whether that is higher and how it is distributed, those are policy-detailed manners.”
Tracy Corbett, manager of planning and sustainable development with the City of Airdrie, said the new strategy won’t change Airdrie’s policy direction, which includes initiatives meant to reduce emissions.
“We’re looking at multimodal transportation, transit and walkability – that’s in place already. What makes it different now is the implementation – maybe it becomes a little easier now with the carbon tax,” Corbett said.
“It sends out the right message and the right price. (So perhaps) people make different decisions.”
Corbett said a higher tax might influence residents to utilize transportation in a different way – including travelling less or downsizing vehicles.
“It changes behaviour and puts that control in the hands of the user,” she said. “Longer term, it’s setting the right message. It helps having climate change on the agenda in a big way.
“At the local level, it becomes much easier.”
The carbon tax, which is estimated to raise $3 billion per year, will cover approximately 78 to 90 per cent of provincial emissions – the highest in Canada. That revenue will be used to fund green infrastructure, renewable energy initiatives and other research and innovation projects.
“We made a commitment to voters, which they endorsed, that we would exercise national leadership on climate change,” Phillips said. “That’s exactly what we did.”
But according to Airdrie Wildrose MLA Angela Pitt, the new strategy will hurt Albertans on tight budgets.
“It’s ridiculous, putting a tax on carbon especially in a time when Albertans are losing their jobs and people are being laid off and taking wage cuts. This does nothing to help Albertans,” she said. “(The Wildrose Party) would do what a government should do, and stay out of the way of people who know how to run their businesses and their industries.”
The carbon price will take effect on Jan. 1, 2017, with an initial price of $20 per tonne. That will increase to $30 per tonne on Jan. 1, 2018.
Details on rebates will emerge in coming weeks, according to Phillips, but she assured Albertans that “lower and middle average income Albertans will not have trouble making ends meet as a result of this policy.”
Premier Rachel Notley is set to meet with Prime Minister Justin Trudeau in Ottawa this week prior to the climate change conference known as COP21, scheduled for Nov. 30 until Dec. 11 in Paris.
