New Brunswick’s carbon tax plan is being called among the weakest in Canada by an environmental protection advocacy group.
The plan, announced Wednesday, will see the federal government’s backstop carbon fuel levy replaced by a provincial carbon tax.
Louise Comeau, a consultant with the Conservation Council of New Brunswick, said the province’s plan will apply a required carbon tax at the pumps but reduce the provincial excise tax on gasoline by nearly the same amount.
“The challenge with that is that any money raised, and it’s substantial … most of that now will be taken by government to offset the revenue it loses from reducing the excise tax,” said Comeau in a phone interview.
Comeau, who is also a researcher at the University of New Brunswick, said the approval came as no surprise as New Brunswick’s model is based on one that has already been approved in Prince Edward Island.
“While it’s a good political outcome in the sense that the federal government has one more province on side, if you will, it’s not such a great outcome yet on the environmental side,” she said.
How Will N.B. Spend Carbon Tax Revenue?
The government now needs to decide how to spend any revenue from the tax, Comeau said, and ensure it is only used for climate protection initiatives.
She said the province primarily needs investments in cutting greenhouse gas emissions and adapting to climate change.
“The biggest opportunity in New Brunswick is to completely reinvest in our electricity system, to phase out coal and oil and gas that’s being used, and to phase in renewables,” said Comeau.
The province also needs to provide incentives to meet their commitment of having 20,000 electric vehicles on the road by 2030, said the council.
The provincial government introduced amendments Thursday as the next step in implementing its carbon tax plan.
In a news release, the Department of Finance said amendments will also allow them to decide how to best allocate carbon pricing revenue back to New Brunswickers.
“Our made-in-New Brunswick solution is fair and it will achieve results,” said Finance Minister Ernie Steeves in a statement.
“Our ultimate goal is to protect New Brunswick consumers and businesses while at the same time ensuring that we are doing our part to combat climate change.”
More details on the carbon tax plan are expected to be released in the new year.
Follow
