LASER TALK: Carbon pricing, national unity and revenue neutrality

On Friday April 1, 2016, Canada’s Environment and Climate Change Minister, Catherine McKenna, indicated that moving too fast on climate could damage national unity.

We need to price carbon now because the climate crisis is truly urgent and also on the positive side, so that Canada can tap into the global multitrillion dollar clean tech economy. We need a nationally integrated carbon price because carbon pricing enacted by provinces cannot protect carbon intensive industries via border tax adjustments under the World Trade Organization, whereas a national carbon price can.

The national carbon price should be revenue-neutral so that the free market and not the federal government will pick the energy winners and losers. If the federal government picks the energy winners, it tends to pit provinces against each other.

Thus for the sake of national unity, Canada’s nationally integrated carbon price must be revenue neutral.





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