The Canadian Government stated that by 2030 the carbon tax will rise to $170 a ton from $50 per ton in 2022. An annual $15 increase.

On March 25th, 2021 the Supreme Court of Canada ruling states that the federal carbon tax is constitutional, which means that provinces may have this tax imposed on them or make sure that their provincial plans fall in order with the federal governments. As the goal here is to reduce Canada’s greenhouse gas emissions by 30% by 2030.

In June of 2007, Quebec was the first province in Canada to implement a carbon tax on the distribution, production and refining industries. The Natural Resource Minister at the time stated that industries would absorb the tax, instead of passing it on to the consumers. By 2013 their strategy started to reveal itself, as a result of its massive investment in the production of clean energy.

Hydroelectricity is a clean and renewable climate-friendly energy source. They have masses of it; 96% of their available electrical power comes from renewable sources. This brings on an advantage for Quebec producers, as the carbon price is low which in turn means lower energy costs. Giving Quebecers a competitive edge internationally as well as countrywide.

The biggest relevance will be to energy intensive manufacturing such as aluminum, oil & gas. Their motor fleet is one of the best energy efficient performers in the country and Montreal is the highest North American city for public transit users. The price of gas in that area is also a little higher than other regions. The provincial government also offer financial support to various communities that have implemented greenhouse gasses emissions (GHG) & fighting for climate change plans.

They have implemented a “Cap-And-Trade-Program” which means that emitters that go over the capped amount have to buy carbon credits, equal to the carbon price of just $17 a ton. Because they have a lower priced carbon credit along with an abundance of inexpensive hydro-electric power, they are much better situated then the rest of the country. These sectors will be issued a permit to allow certain industries to pollute but can be traded or sold to other companies that need to emit more. Example: Company A has 10 tons of extra GHG at the end of the year; they will be able to trade/sell them to Company B, or they also have the choice of banking them for future years.

The extra cost is estimated to be about $23 per ton by 2022, while federally that amount is $50 and rising quickly. The provincial revenues go towards various measures to reduce carbon emissions to fight climate change.

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