Canada plans to raise its carbon tax from C$30/ton ($24/ton) currently to C$50/ton ($39/ton) in 2022. The tax will increase by C$15/ton annually from 2023 to reach C$170/ton ($134/ton) in 2030. The tax increment is part of Prime Minister Justin Trudeau’s plan to achieve the country’s latest greenhouse gas emissions reduction targets announced earlier this month.
A study published last year estimated that capping carbon tax at C$50/ton would not be enough to help Canada cut emissions by 30% by 2030, from 2005 levels. With the higher tax, the government aims at reducing emissions by 32%-40% by the next ten years.
Environmental groups welcomed the tax hike but said that Canada needed to do more to solve the climate crisis. Activists have been criticizing the country for supporting the expansion of oil and gas production. The government also supports pipeline projects that will move Canadian heavy oil to the US.
The proposed increase in carbon tax remains subject to a Supreme Court ruling. It is expected to face challenges from Alberta, Ontario, and Saskatchewan provinces.
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Published on December 16, 2020 4:04 PM (GMT+8)Last Updated on December 16, 2020 4:04 PM (GMT+8)
