Quebec unveils carbon tax

The Globe and Mail ^ | 6/16/06 | RHÉAL SÉGUIN

[doc30]

Quebec unveils carbon tax Province hopes levy on oil and gas firms will put $1.2-billion toward its Kyoto goals RHÉAL SÉGUIN

From Friday's Globe and Mail

QUEBEC — Quebec plans to adopt tough vehicle emissions standards and will become the first province to levy a "carbon tax" on oil and gas companies as part of an ambitious plan to fight global warming.

The tax will raise about $200-million a year over six years, provincial government officials said yesterday, and will finance a $1.2-billion Green Fund to make reductions in greenhouse gas emissions called for under the international Kyoto accord.

Environmental groups welcomed the measures, but a petroleum industry spokesman said the tax will be passed on to consumers.

Quebec Premier Jean Charest and Environment Minister Claude Béchard said that from 2006 to 2012, the province will tax oil and gas companies for hydrocarbon products sold in bulk to retailers -- non-renewable fossil fuels such as heavy oil, gas, natural gas and propane.

The Quebec Energy Board has been asked to work out tax rates and other details, such as a sliding scale in which heavy oil used to heat homes might be taxed at a higher rate than less polluting natural gas.

The Green Fund would be used to finance projects such as improvements to public transportation, education about emission cuts and ways to make buildings more energy efficient. Quebec already has the lowest levels of greenhouse gas emissions in the country.

A carbon tax could prove politically divisive, however. Liberal MP and leadership contender Michael Ignatieff was criticized by members of his own party after he merely floated the idea.

Quebec's plan also calls for new vehicles sold after 2010 to produce less greenhouse gases. Tough standards similar to those enforced in California will apply to cars and trucks sold in Quebec. California has adopted stiff energy-efficiency standards, which between 2009 and 2016 will reduce greenhouse gas emissions produced by new cars and light trucks by 25 per cent to 30 per cent.

Manufacturers of vehicles sold in Quebec will have to install equipment to ensure that they meet the tougher emission controls, which could mean higher prices for the province's consumers.

"We want to be the leaders in Canada. 2010 is the objective we have set to impose the California standard," Mr. Béchard said. "Kyoto is not a dream; it is possible to achieve."

Along with Manitoba, Newfoundland and Labrador, Quebec has vowed to implement the Kyoto accord even if the federal government drops out. Prime Minister Stephen Harper has said the Kyoto goal of a 6-per-cent reduction in greenhouse gas emissions by 2012 may not be possible.

Mr. Charest said that in addition to the new tax, Quebec needs $328-million from Ottawa to meet the Kyoto targets. He noted that Ottawa has promised to give Ontario money for its efforts to fight global warming.

Oil and gas companies were quick to point out that the carbon tax will be passed on to consumers. Neither government officials nor company officials would speculate how much that will mean at the gas pump.

"There is no doubt that consumers will pay more for the measures," said Carol Montreuil, a spokesman for the Canadian Institute of Petroleum Products. "We are talking about $200-million, and in one way or another, this money will have to come out of the pockets of consumers. . . . You can't expect an industry to absorb an additional $200-million cost."

Mr. Béchard called the oil industry's reaction "odious." Mr. Charest noted that that the aluminum industry has reduced greenhouse gases and that other energy companies such as Hydro-Québec have introduced energy-efficiency measures without passing the costs on.

"It is high time [oil companies] play by the same rules as everyone else," Mr. Charest said. "This represents a great opportunity for the oil producers. If they don't see it that way I'd regret that. They'd be totally wrong. They will be on the wrong side of this issue."

Environmentalists applauded the Quebec government plan and urged other provinces to follow suit.

"This is an excellent move," Greenpeace spokesman Steven Guilbeault said. "The time has come for oil companies to pay for the pollution they cause related to climate change. It would be outrageous for oil companies who make billions of dollars in profit to have consumers pay the bill."

Environmentalists have long supported a carbon tax, saying it would discourage the use of fossil fuels while raising money for environmental uses. But it is strongly opposed in the Alberta oil patch.

The Canadian Association of Petroleum Producers said this week it continues to oppose any tax that singles out the oil and gas industry. Pierre Alvarez, president of the association, also noted that several senior ministers in the previous Liberal government had explicitly ruled out imposing a carbon tax.

With reports from Bill Curry, Patrick Brethour and CP

[doc30]

Stupid, stupid, stupid thing to do.

[fanfan]

Canada ping!

Please FReepmail me to get on or off this ping list.

[kentj]

Well we all won't be rushing to buy gas as well as drugs from our "Friends" up north now will we - it is a hell of a long way to go to buy gas for me anyway.

[doc30]

Gas prices are already double in Canada what they are in the U.S. and it's all taxes.

[bubman]

And we export 90% of it on top of that. Liberalism = Poverty

[TheBattman]

it's all about control....and nothing about "protecting the environment".

[Eric in the Ozarks]

What are they doing with the money they collect ?

[from occupied ga]

Quebec plans to adopt tough vehicle emissions standards and will become the first province to levy a "carbon tax" on oil and gas companies as part of an ambitious plan to fight global warming.

Wonderful - I love socialism (in other countries) it will make that much more gas available outside Quebec. Vive la débiles!

The tax will raise about $200-million a year over six years, provincial government officials said yesterday, and will finance a $1.2-billion Green Fund to make reductions in greenhouse gas emissions called for under the international Kyoto accord.

Yet another reason that the entire states of New York and Massachussetts should be given to Quebec - they think that way there too.

[Renderofveils]

Included in recent "Carbon Tax" talks are whether or not to incur new taxes on the process of cremating deceased citizens.

Well, not really. But when I saw the carbon tax headline that was the first thing to spring to mind.

[Ingtar]

And in 2011 when no one can manufacture a car that meets the standards for a reasonable price, what will they do?

[OpusatFR]

Did you see this:

http://www.theglobeandmail.com/servlet/story/RTGAM.20060614.woilsands0614/BNStory/National/home

"FORT MCMURRAY, ALTA. — The mayor and council in this booming northern Alberta city voted unanimously Tuesday to try and put the brakes on all future oil sands development until something is done to improve the area's infrastructure.

Specifically, Mayor Melissa Blake and the council for the Municipality of Wood Buffalo agreed to apply for intervenor status when oil sands giant Suncor goes to the Alberta Energy and Utilities Board on July 5 to apply for an expansion of its operations."

The freakin idiots in Canada are trying to stop the expansion and production of oil and gas.

I'm still not gonna short it.

[yankeedame]

The tax will raise about $200-million a year over six years, provincial government officials said yesterday...

That is assuming, of course, that nobody, and nothing, changes in those six years.

[from occupied ga]

And in 2011 when no one can manufacture a car that meets the standards for a reasonable price, what will they do?

French Canada? Ride horses, snowmobiles, or old pickup trucks :-) Only two seasons in Quebec - Winter and road work.

[posterchild]

Will we see pencils and charcoal taxed?

[sr4402]

Yes, Quebec is with me. Why doesn't the U.S. follow their lead in suppressing their economy and making me King?

/sarcasm off

[sergeantdave]

Anytime a liberal politician tells you something will cost $200 million, multiply that by 10.

Then add in another 20% for assorted unforseeable costs. Tack on another 30% for waste, fraud and abuse. Slip in another 25% for hiring more bureaucrats. Calculate another 15% for the political "blackhole." Tabulate a 100% increase for inflation over 10 years. Bribes? Figure another 25%. And then buy a few hundred chateaus in France for another 10% or so.

And in the end, the Marxist goal will never be achieved.

[Extremely Extreme Extremist]

3rd picture of Gore - classic symptoms of hypertension. The 2000 election loss has taken a toll on him.

[proud_yank]

"There is no doubt that consumers will pay more for the measures," said Carol Montreuil, a spokesman for the Canadian Institute of Petroleum Products. "We are talking about $200-million, and in one way or another, this money will have to come out of the pockets of consumers. . . . You can't expect an industry to absorb an additional $200-million cost."

You can't "tax business/industry/etc". Those costs are always passed onto the consumer. The only time industry 'absorbs' the blow of insane taxation is when they close their doors since people can't buy their product as its cost prohibitive.

BTW, anyone see any irony in the fact that they pass this sort of nonsense then try to dip into Alberta's oil-lined pockets???