Canada is going to try to do so…soon.
The Canadian government last week announced its plans to implement the federal carbon tax policy and plan. The National Carbon Plan will become a reality in just over three months, on January 1, 2019.
Canada is heading in a different direction than the United States, but they may be blazing the trail ahead of us.
Prime Minister Justin Trudeau has pledged more than $2 billion in annual carbon tax rebates, in order to persuade Canadians that putting a price on pollution is the best way to manage climate change.
Trudeau gave individual provinces a year to come up with their own plan to meet federal guidelines, but four provinces dug their heels in over the issue. So, the provinces that don?t have a plan up to the federal government?s standards – including Ontario, New Brunswick, Manitoba, and Saskatchewan – will incur a $20 per ton fuel charge based on Ottawa?s program mandate. The $20 charge will take effect in April of next year and will continue to rise, up to $50 a ton by 2022.
Canadian agriculture will certainly be impacted by the National Carbon Plan due to the industry?s heavy reliance on fossil fuels across all production stages.
Peter Sykanda is a policy analyst with the Ontario Federation of Agriculture. Sykanda has monitored this program?s evolution since Trudeau pledged a carbon reduction program in his 2015 election campaign.
Farm and agribusiness groups across Canada have been vocal in their concerns about the National Carbon Plan. Peter Sykanda says the federal government has not ignored the needs of agriculture. He says the exemption of on-farm diesel use as a good start, but farmers need other considerations as well.
AUDIO: Profit Matters 10-31-18
