|April 21, 2009|
Unified Carbon Price is a Must for Canada
|The National Round Table on the Environment and the Economy (NRTEE) today advised the federal government to move quickly to implement a unified national carbon pricing policy across Canada in order to meet the Government of Canada’s greenhouse gas (GHG) emission reduction targets for 2020 and 2050. |
The Report, Achieving 2050: A Carbon Pricing Policy for Canada sets out a comprehensive road-map for establishing a national cap-and-trade system in a phased manner, with adequate transition for industry and consumers to allow Canada to achieve its environmental goals at the least economic cost.
"The Round Table’s report concludes that a unified national carbon price through an economy-wide cap-and-trade system across all jurisdictions, emissions and sectors is necessary to allow Canada to reach its emission reductions targets at the least economic costs," said NRTEE Chair Bob Page.
The NRTEE conducted original economic modeling, detailed analytical research, and held extensive stakeholder consultations to develop its proposed carbon pricing policy for Canada. It concluded that an economy-wide cap-and-trade system would be the most effective way to achieve the federal government’s deep long-term emission reduction targets at the least economic cost. The policy is designed to initially contain costs for industry and consumers, but then transition to achieve greater carbon emission reductions through an open auction of carbon emission permits.
Key elements of the policy include:
"Our proposed carbon pricing policy for Canada is responsible, reasonable and realistic" said David McLaughlin, President and CEO of the NRTEE, "It integrates environmental and economic considerations, provides an adequate transition period for implementation, and builds on existing federal, provincial, and international approaches."
The Round Table’s research shows that there was a higher cost to a continued fragmented approach to carbon pricing across Canada than those found under the proposed unified carbon pricing approach.
The NRTEE’s analysis shows that under the proposed policy the Canadian economy, as a whole, would continue to grow under the proposed carbon pricing policy but at a somewhat reduced rate. Some sectors, regions and Canadians would be impacted more significantly than others but this can be addressed through the design of the proposed policy and auction revenue recycling measures targeted at households and businesses.
A Single National Cap-and-Trade System
The central element of the Round Table’s carbon pricing policy is a single national cap-and-trade system that will unify carbon prices and policies across all emissions from all sectors and all jurisdictions, based on a cap apportioned between:
The NRTEE believes now is the time to prepare Canada and Canadians for a low-emission future.
"We see an opportunity for Canada to position itself for a sustainable economic recovery based in part on a unified, carbon pricing policy that prepares us positively for the transition to a low-carbon global economy", said Bob Page. "The time to act is now."