Alright, so I’m going to tackle a bit of a controversial topic this week. Whether you agree with me or not, this is simply for the sake of discussion: The Carbon Tax.
The Federal Government has developed a minimum $10 per tonne tax/levy to be in place by 2018 or it must be met in a cap-and-trade system. In the latter, the “cap” sets a limit on emissions, which is then lowered over time to cut greenhouse gas emissions, while the “trade” opens a market to buy and sell carbon allowances. The “trade” allows companies that produce more pollutants to purchase allowances.
In Saskatchewan a carbon tax will greatly affect the province’s major industries. The petroleum industry and the agriculture industry in particular will see added strains if a carbon tax goes through, which I’m not sure this juggernaut can be stopped. The petroleum industry is essentially mass carbon release. The agriculture industry relies on heavy equipment, as well as the use of synthetic fertilizer which is made through a process involving natural gas, and there is no real way to avoid these costs.
However, the carbon tax, to the best of my understanding is being forced on provinces, but the provinces are to keep any revenue made through the carbon tax. So, if we can or can’t stop the carbon tax, is it really unmanageable in Saskatchewan?
An article I read the other day focused on the carbon capture and sequestration technologies out at Boundary Damn near Estevan. According to the Leader Post, 400,000 tonnes of CO2 were captured in the past year. Considerable.
So, what if the Saskatchewan Government decided to accept the carbon tax and put more research into sequestration and created more of these carbon capture facilities?
What if Saskatchewan decided to take the taxes collected and give money back in some form to farmers and ranchers that could show they were aiding in sequestering carbon? Having been around speakers who focused on holistic management, that was one of the biggest topics they addressed, that they were actually taking carbon from the air and with their practices were putting it back into the soil. Surely, a system could be developed where the government put a price on that and paid those farmers an amount from the coiffeurs of the carbon tax.
Additionally, the idea of a cap-and-trade system makes sense to use as the industries that release carbon could work with industries or businesses that wouldn’t be so heavily taxed and find a way to share the costs in a way that would be fair to everyone.
Do I think the carbon tax is a good idea? Yes, I do actually. But I don’t think ours is one that has been particularly thought through, nor do I think the timing is right. Our economy is currently rather poor and exactly what it will look like needs to be addressed; two years I don’t think is enough to fully understand the implications or create a proper system. I think it’s going to be rushed and what it turns out being will be frustrating to everyone involved.
I do believe, however, that if a carbon tax is introduced that money shouldn’t enter the general funds of the government, but should be earmarked to lessening our carbon footprint as a province in whatever form that might take. That way the tax can make itself defunct by our government putting effort into sequestration research and technological advancement on this front.
What of the petroleum industry? Well if we put efforts into sequestration and the petroleum industry works alongside the government on that front it should be able to keep clipping along without much trouble.
So is Brad Wall’s government going to stop the federal initiative, I honestly don’t think so, but I do hope that as soon as they realize the fight is futile that they will put their efforts into making a carbon tax in Saskatchewan into something as useful as possible for the citizens.
“The secret of change is to focus all of your energy, not on fighting the old, but on building the new.” ~ Socrates
