06-17-2006, 04:56 AM
Quebec introduces carbon tax to pay for Kyoto plan
Updated Fri. Jun. 16 2006 8:24 AM ET
CTV.ca News Staff
Quebec will become the first province to levy a tax on oil and gas companies for hydrocarbon products, as part of an ambitious plan to implement the Kyoto protocol, Premier Jean Charest announced Thursday.
"The Kyoto protocol isn't perfect but currently it's the best thing on the table," Charest told a news conference.
The province will tax oil and gas companies for non-renewable fossil fuels sold in bulk to retailers such as heavy oil, gas, natural gas and propane.
The tax is expected to raise $200 million every year that the provincial government will spend on its 2006-2012 plan to fight global warming.
Along with Quebec, provincial governments in Manitoba and Newfoundland and Labrador also have said they will continue with plans to meet the objectives of Kyoto, even if Ottawa decides to dump the accord.
Prime Minister Stephen Harper's government has said that commitments set out in the international accord may not be possible.
But Charest and Economic Development Minister Claude Bechard called on Ottawa to help, saying the province can't meet its targets to reduce emissions without federal financing.
"We're going to do 72 per cent of the effort but that leaves 28 per cent for Ottawa to do,'' said Bechard.
Charest said Quebec needs another $328 million from the federal government to fully implement the plan to reduce emission by 10 million tonnes a year.
Among the measures Quebec's plan calls for:
Limiting the speed of trucks to 105 km/h, which Quebec says will eliminate thousands of metric tonnes of greenhouse gases.
Strengthening the province's building code to make buildings more energy efficient.
Educating the public about curbing emissions
Paving the way for new vehicles sold after 2010 to produce less greenhouse gases. Manufacturers of vehicles sold in Quebec will have to install equipment to make sure they meet the tougher standards.
There was mixed reaction to the province's announcement.
Quebec's Greenpeace chapter applauded the project, calling it a "very good action plan."
"We're proud to see Quebec take leadership in this area," Stephen Guilbeault told The Canadian Press.
But a spokesman representing the petroleum industry told the wire agency the tax could be costly.
"At the end of the day, unfortunately, it's a tax and consumers will have to pay for it,'' said Carol Montreuil of the Canadian Petroleum Products Institute.
The idea of a carbon tax has long met with derision in the Alberta oil patch and divided politicians.
Former prime minister Jean Chretien promised in the 1980s he would never introduce such a tax.
Liberal leadership candidates Gerald Kennedy and Stephane Dion also oppose the carbon tax while rival Michael Ignatieff endorses the idea.
With files from The Canadian Press
Updated Fri. Jun. 16 2006 8:24 AM ET
CTV.ca News Staff
Quebec will become the first province to levy a tax on oil and gas companies for hydrocarbon products, as part of an ambitious plan to implement the Kyoto protocol, Premier Jean Charest announced Thursday.
"The Kyoto protocol isn't perfect but currently it's the best thing on the table," Charest told a news conference.
The province will tax oil and gas companies for non-renewable fossil fuels sold in bulk to retailers such as heavy oil, gas, natural gas and propane.
The tax is expected to raise $200 million every year that the provincial government will spend on its 2006-2012 plan to fight global warming.
Along with Quebec, provincial governments in Manitoba and Newfoundland and Labrador also have said they will continue with plans to meet the objectives of Kyoto, even if Ottawa decides to dump the accord.
Prime Minister Stephen Harper's government has said that commitments set out in the international accord may not be possible.
But Charest and Economic Development Minister Claude Bechard called on Ottawa to help, saying the province can't meet its targets to reduce emissions without federal financing.
"We're going to do 72 per cent of the effort but that leaves 28 per cent for Ottawa to do,'' said Bechard.
Charest said Quebec needs another $328 million from the federal government to fully implement the plan to reduce emission by 10 million tonnes a year.
Among the measures Quebec's plan calls for:
Limiting the speed of trucks to 105 km/h, which Quebec says will eliminate thousands of metric tonnes of greenhouse gases.
Strengthening the province's building code to make buildings more energy efficient.
Educating the public about curbing emissions
Paving the way for new vehicles sold after 2010 to produce less greenhouse gases. Manufacturers of vehicles sold in Quebec will have to install equipment to make sure they meet the tougher standards.
There was mixed reaction to the province's announcement.
Quebec's Greenpeace chapter applauded the project, calling it a "very good action plan."
"We're proud to see Quebec take leadership in this area," Stephen Guilbeault told The Canadian Press.
But a spokesman representing the petroleum industry told the wire agency the tax could be costly.
"At the end of the day, unfortunately, it's a tax and consumers will have to pay for it,'' said Carol Montreuil of the Canadian Petroleum Products Institute.
The idea of a carbon tax has long met with derision in the Alberta oil patch and divided politicians.
Former prime minister Jean Chretien promised in the 1980s he would never introduce such a tax.
Liberal leadership candidates Gerald Kennedy and Stephane Dion also oppose the carbon tax while rival Michael Ignatieff endorses the idea.
With files from The Canadian Press