There are multiple options for reconciling a national carbon fee and dividend policy with existing provincial carbon pricing programs such as the BC Carbon Tax, the Cap and Trade system in Quebec and Ontario or the Specified Gas Emitters policy in Alberta: Preemption. In preemption, the provincial carbon pricing programs would cease to function once the federal carbon fee and dividend law took effect. Stacking. In stacking, provincial programs would continue to function as is on top of the federal carbon fee and dividend program. Integration. In integration the two programs would work together. For instance, if the provincial price for carbon was lower than the federal fee, emitters would pay the federal level. If the price rose above the federal level, emitters would have to pay the higher price. The point here is that there are multiple options for reconciling the provincial programs with the federal carbon pricing program, and should not be a reason to hold up federal action. Skeptic Claims and One-Liners Carbon Fee Skeptic Claim: A federal carbon fee and dividend policy will be impossible to reconcile with existing provincial legislation “What Would a Federal Carbon Tax Mean for California Cap-and-Trade?”. March 14, 2013. Four Twenty Seven Climate Consulting. LASER TALK: Interaction with Provincial Carbon Pricing Programs
One-Liner: There are multiple strategies for reconciling these programs including preemption, stacking, and integration; we just have to choose one.