Federal carbon pricing to take effect in Nova Scotia, P.E.I. and Newfoundland and Labrador
Guilbeault says negotiations have been mostly smooth — except with N.S. Premier Tim Houston
David Thurton , Peter Zimonjic · CBC News · Posted: Nov 22, 2022 4:00 AM ET | Last Updated: 8 hours ago
Consumers in the Atlantic provinces (except New Brunswick) are joining residents in Alberta, Saskatchewan, Manitoba and Ontario under the federal price on carbon. (Robert Short/CBC)
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The federal government is imposing its fuel charge — commonly called the carbon tax — on consumers in Nova Scotia, Prince Edward Island and Newfoundland and Labrador.
Environment and Climate Change Minister Steven Guilbeault said Tuesday that although Ottawa will begin imposing its federal carbon backstop on these provinces, it will not kick in until Canada Day, long after winter has passed.
"We are in a federation and we have to be able to take into account different regional realities in the country. And that's exactly what we've done with our system," Guilbeault said.
"What we are trying to do is create more fairness across the board and to ensure that what every jurisdiction is doing, whether they have their own system or are using the federal system, is equivalent and passes a federal benchmark."
Provincial plans to price carbon submitted to the federal government by Nova Scotia, Prince Edward Island and Newfoundland and Labrador were deemed to have fallen short of the federal benchmark for emissions reductions.
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Those three provinces will join Alberta, Saskatchewan, Manitoba and Ontario under the federal backstop. New Brunswick, Quebec, the Northwest Territories and B.C. will continue to oversee their own carbon pricing systems.
The federal price will take effect on July 1 and consumer rebates — the federal government's tax-free Climate Action Incentive Payments (CAIP) — are expected to arrive within weeks of that.
Quarterly CAIP payments typically arrive in January, April, July and October — part of the federal government's plan to return 90 per cent of the money it collects through the carbon tax.
Federal officials speaking on background said the July payment will net $248 for Nova Scotia residents, $240 for P.E.I. residents and $328 for residents of Newfoundland and Labrador. Payments in the same amounts will also be issued in October and January 2024.
Difficult negotiations
The federal carbon pricing system is divided into the fuel charge — which affects consumers — and the Output-Based Pricing System, which determines the cost of emissions from the industrial sector.
Guilbeault also announced Tuesday that the federal government has accepted Saskatchewan's proposal to put a price on its industrial emissions.
It means that Saskatchewan joins Alberta., B.C., New Brunswick, Newfoundland, the Northwest Territories, Nova Scotia, Ontario and Quebec in running its own industrial carbon pricing system. The federal government's industrial carbon pricing system will continue in place in Manitoba, P.E.I., Yukon and Nunavut.
Guilbeault said that while negotiating industrial emissions was "rather smooth" with most provinces — including Alberta and Saskatchewan — that was not the case for discussions with Nova Scotia Premier Tim Houston. Guilbeault said those talks were filled with "theatre and drama."
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