The government unveiled their draft legislation for carbon pricing mechanisms, largely as the backstop for those provinces whose governments are toeing the agreed-upon line, and it includes both pricing incentives for those who can get 30 percent below the national standards, as well as the ability for the federal government to directly reimburse individuals for their carbon payments rather than just returning it all to provincial coffers and letting the provincial government figure it out.
.@cathmckenna says 'we're not letting anyone off the hook' over provisions to protect industrial emitters' international competitiveness. #cdnpoli pic.twitter.com/Y2UgV8RFqd
— Power & Politics (@PnPCBC) January 15, 2018
Energy economists Andrew Leach and Trevor Tombe dig into the announcements a bit more.
It's going to take a while to get through the fine print, but the federal carbon pricing regime is, for all intents and purposes, the Alberta system. A consumption-side carbon price and an industrial emitters regime with output-based allocations to protect competitiveness.
— Andrew Leach (@andrew_leach) January 16, 2018
This is, I believe, the 5th major GHG regulatory effort out of ECCC in the last 12 years, under three governments. LPC Project Green, CPC Reg Framework, CPC cap-and-trade, CPC sector-by-sector approach, LPC carbon pricing backstop.
— Andrew Leach (@andrew_leach) January 16, 2018
I think this might be the most interesting part of the federal GHG backstop policy: fed gov't discretion on distribution of revenues from carbon charges. 1/N #cdnpoli pic.twitter.com/vt1yYXyOh5
— Andrew Leach (@andrew_leach) January 16, 2018
A similar clause appears in the industrial regulations for GHGs, allowing more discretion than I'd expected in how any excess compliance payments are used. #CDNpoli pic.twitter.com/Dbnh9d80uQ
— Andrew Leach (@andrew_leach) January 16, 2018
Here, you will find the Federal Government response to the proposed Carbon Tax Repeal Act of 2019 in Alberta. #ableg #CDNpoli pic.twitter.com/9pPw0EtOcU
— Andrew Leach (@andrew_leach) January 16, 2018
Provisions in the Act to extend the time period beyond 2022 or, interestingly, to change the price schedule between now and 2022. pic.twitter.com/FOlCD2yyvJ
— Andrew Leach (@andrew_leach) January 16, 2018
Offsets are possible under the regulations, but as of now, there are no federal guidelines. Will be interesting to see whether AB offsets would be eligible for compliance in, say, Saskatchewan. #CDNpoli #ableg pic.twitter.com/zLp78oCD3H
— Andrew Leach (@andrew_leach) January 16, 2018
An interesting comparison: the proposed GHG prices in the Harper plan of 2008 vs the Trudeau plan of 2018. PMSH price for 2016 was the same as PMJTs proposed price for 2022. #CDNpoli pic.twitter.com/K6ErqhOLvT
— Andrew Leach (@andrew_leach) January 16, 2018
Interesting to note the use of funds: Feds will distribute their CTax proceeds to the province *OR* persons in a prescribed manner (i.e., Feds leaving themselves discretion to provide low income rebates directly). S. 164 (2): pic.twitter.com/MgAealhKJB
— Trevor Tombe (@trevortombe) January 15, 2018
Good reads:
- The summit on North Korea is taking place in Vancouver, which will likely be focused more on sanctions than diplomacy (but diplomacy is still a big deal).
- Trudeau, incidentally, says that despite China and Russia not being involved in the talks, there is still value in having them.
- New Ethics Commissioner Mario Dion says that he will carry on the Bill Morneau/Bill C-27 investigation, and he thinks there should be stronger penalties.
- At yesterday’s Supreme Court of Canada hearing on consultation in drafting legislation, some judges were concerned about what was being asked of them.
- Here’s a look at the prepared talking points prepared at Veterans Affairs after the debacle that was the Vimy 100 preparations.
- Maclean’s digs into the darker side of marijuana dependence.
- Opposition MPs vow to make a point of Trudeau’s meeting with Joshua Boyle when Parliament gets back at the end of the month.
- The new naval supply ships are being delayed again, with construction not slated to begin now until 2019. Surprise!
- As it happens, the value of Morneau Shepell contracts with the government has been declining in recent years. Scratch that conspiracy theory!
- Apparently, Andrew Scheer is in danger of being branded as a “fuddy-duddy, 1950s dad” if he carries on the way he has been without better defining himself.
- Kady O’Malley’s Process Nerd column looks at the debate over having a commission to decide on leadership debates during elections.
- Martin Patriquin calls out the “amnesia” in Quebec’s political class as the one-year anniversary of the Quebec City mosque shooting approaches.
- Patriquin also looks at Senator Lynn Beyak’s faux martyrdom and how she plans to profit from it.
- Stephen Gordon is having none of the Liberals’ fiscal numbers (unless they really want five years of grinding austerity).
- Chantal Hébert compares Trudeau’s town halls to the spectacle of Question Period.
- Andrew Coyne thinks that a nuclear North Korea means that Canada has no choice but to enter into ballistic missile defence with the Americans.
- Colby Cosh turns his caustic attention to the Hawaiian missile false alarm over the weekend, and how it became such a debacle.