A regulatory proposal introduced in December could ‘diminish’ investment in renewable power in Canada, according to the C.D. Howe Institute
OTTAWA — The federal carbon tax could favour coal-fired power plants over clean sources like wind and solar in its approach to industrial emissions, a new report says, potentially undermining a central aim of the Liberal government’s policy.
The report could add weight to claims that the federal carbon tax introduced by Prime Minister Justin Trudeau does little to target high-intensity industrial emissions. It could also have an impact on coal-related emissions in Alberta, which still depends heavily on the fuel source to generate power.
“The result of differentiating the benchmark is that a more GHG-intensive coal-fired power plant may pay less for each tonne of GHG emissions than a natural-gas fired power plant,” Bishop wrote in the report. “Our plan is designed to ensure that industries competing internationally can continue to remain competitive, while making sure they have incentives to find clean solutions, be more energy efficient and save money,” a spokesperson for McKenna said Tuesday in a written response to questions from the National Post.
Kenney said last May he would introduce a carbon levy on heavy emitters, similar to the Alberta policy before the NDP — a move that would replace the federal OBPS system.
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