Tag Archives: Carbon Levy

Premier Rachel Notley and Environment Minister Shannon Phillips release Alberta's climate change plan.

The Winter of Discontent over the Carbon Tax

Alberta’s carbon tax, lauded by economists and experts and derided by opposition conservatives, came into force on January 1, 2017.

From photo-ops at gas pumps to outright climate change denial, opposition to the carbon tax has been nothing short of hysterical over the past week.

Don MacIntyre MLA

Don MacIntyre

Don MacIntyre, Wildrose MLA for Innisfail-Sylvan Lake, sidelined his party’s attack on the carbon tax as a ‘tax on everything’ when he dove into climate change denying rhetoric during a January 2, 2017 press conference at the Legislature. “The science isn’t settled,” MacIntyre is reported to have said, despite the existence of overwhelming scientific evidence claiming otherwise.

Wildrose MLA Derek Fildebrandt marked New Year’s Eve by posting photos of himself filling up his truck and jerrycans to avoid any increase to gas prices caused by the carbon tax on January 1. It is estimated that he may have saved a few dollars, but in many locations across Alberta the price of gas actually dropped after the weekend (gas at the local station in my neighbourhood in northeast Edmonton is six cents cheaper per litre today than it was on Dec. 31).

Jason Kenney

Jason Kenney

Progressive Conservative leadership candidate Jason Kenney probably levelled the silliest criticism of the carbon tax when he tweeted on January 4 a photo of Tesla charging station in Fort Macleod, which was empty. This was apparently meant to be an argument that the four day old carbon tax was a failure.

Despite claims by opposition Wildrose and PC politicians that they would repeal the tax if elected in 2019, a federal carbon tax dictated by Ottawa would likely be imposed in its absence.

But arguments in favour of the made-in-Alberta carbon tax have been, well, confusing and technical.

Shannon Phillips

Shannon Phillips

Environment and Parks Minister Shannon Phillips’ statement that the province is “still standing” the day after the carbon tax was implemented was factually correct but probably not the statement most Albertans were waiting to hear. Phillips is one of the government’s smartest cabinet ministers, and has done a good job promoting the flagship Climate Leadership Plan, but the NDP have fallen short when it comes to easing Albertans worries about the cost of implementing the carbon tax during an economic downturn.

Economists like Trevor Tombe and Andrew Leach have penned or compiled intelligent arguments defending the carbon tax. Even executives of Canada’s largest oil and gas companies have come out in support of the carbon tax. Many of those executives stood on stage with Phillips and Premier Rachel Notley, along with environmental leaders, when the climate change plan was released in November 2015.

Justin Trudeau

Justin Trudeau

In November 2016, Prime Minister Justin Trudeau heaped praise on Notley for Alberta’s climate change plan, which includes the carbon tax, as a key reason for the approval of the Kinder Morgan Trans-Mountain pipeline expansion and the Enbridge Line 3 pipeline replacement.

But as anyone involved in politics knows, emotion and anger can sometimes trump facts, science and research. The recent presidential election south of the border confirms this.

Advertisements recently released by the Ontario government are, in my opinion, a good example of an emotional argument in favour of a climate change plan.

One of the arguments that I continue to hear is that Alberta and Canada should not implement a carbon tax because Donald Trump does not support a carbon tax. Trump also tweeted that he believes climate change is a conspiracy created by the Chinese government, so I am not confident that he is someone we should be looking to for leadership on this issue.

Donald Trump

Donald Trump

Overall public opposition to the carbon tax might start to fade in the coming months as many Albertans begin receiving their rebate cheques – around sixty percent of Alberta households will get a rebate, with full rebates for single Albertans earning $47,500 or less, and couples and families who earn $95,000 or less – but the NDP government will need to work overtime to provide clear evidence of how the carbon tax will benefit Albertans.

Of the funds collected by the carbon tax, the government says $2.3 billion will go towards rebate programs, $3.4 billion will help businesses adjust to the carbon levy, $6.2 billion will go toward energy industry diversification and job creation, $3.4 billion for large scale renewable energy and technology, and $2.2 billion for green infrastructure. As well as $645 million will be directed towards the new provincial agency Energy Efficiency Alberta and $195 million to assist coal communities, which will be impacted by the phase out of coal-fired power plants by 2030.

The NDP also cut the small business tax from three percent to two percent, a change that came into effect as the carbon tax was implemented.

Taxes in Alberta remain low, some of the lowest in Canada. Investing in measures that could create a cleaner environment for the next generations is not a burden, it is a responsibility. The carbon tax is a sensible policy, but it could be an uphill battle to convince Albertans to embrace it.