TORONTO—Rick Smith, President of the Canadian Climate Institute, made the following statement on the critical importance of industrial carbon pricing:
“Industrial carbon pricing is the most important policy Canada has for cutting carbon pollution and creating a competitive clean economy. Research from the Canadian Climate Institute finds Canada’s industrial carbon pricing systems—if maintained—would do more than any other policy to cut emissions between now and 2030.
“Industrial carbon pricing (also known as large-emitter trading systems) differs from the consumer carbon price in important ways. It contributes at least three times as many emissions reductions as the consumer carbon tax. And it does not increase costs for consumers.
“Industrial carbon pricing has been explicitly designed to protect the competitiveness of trade-exposed companies with big carbon footprints, while also giving them economic incentives to invest in cleaner technologies, energy efficiency and pollution-reducing measures.
“Our analysis shows industrial carbon pricing adds next to nothing to the operating costs of large emitters—for example, it drives low-carbon innovation in the oil and gas sector at less than the cost of a Timbit a barrel. Large-emitter trading systems also create lucrative credit markets that help attract investment to Canada for new, low-carbon projects—from carbon capture and storage to clean steel to low-carbon chemical manufacturing.
“Cancelling large-emitter trading systems would ultimately hurt more than it would help. It would create profound uncertainty for businesses and investors at the worst possible time, and jeopardize upwards of $5 billion in credit values in Alberta alone. It would also undermine Canadian exports to priority trading partners such as the UK and EU, which are introducing carbon tariffs that give low-carbon producers a competitive advantage.
“Without the signal industrial pricing systems send, other types of incentives—like tax credits for investing in clean technology and manufacturing—will not be enough to meaningfully drive down carbon pollution from big industry or deliver on Canada’s climate goals. Eliminating the federal industrial carbon pricing requirement would ultimately leave Canada without a credible climate plan, making the 2030 climate target impossible to reach, and undermining rather than enhancing Canada’s reputation internationally.
“The Canadian Climate Institute is committed to working with all governments and stakeholders across the country to continue to advance Canada’s climate progress and accelerate evidence-based solutions for low-carbon competitiveness.”
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Resources
- Explainer | The differences between industrial and consumer carbon pricing
- Insight | New analysis shows how Canada’s industrial carbon pricing protects competitiveness and profitability
- Insight | Industrial carbon pricing has negligible impacts on household costs—and in some cases is a benefit
- Blog | The inescapable math of emissions, LNG, and international trade
- Blog| How large-emitter trading systems keep Canada’s exporters competitive
- Resource page | Industrial carbon pricing
