Alberta Adopts Carbon Tax

Toronto Globe and Mail: Alberta’s NDP government is imposing new curbs on emissions from the oil sands and establishing an economy-wide carbon tax in a sweeping new plan aimed at showing it is serious about fighting climate change.

The long-awaited strategy, which comes days before world leaders meet in Paris for a major climate summit, also includes a phaseout of coal-fired power generation in the next 15 years, a 10-year plan to nearly halve methane emissions, as well as incentives for renewable energy.

How did B.C. pull off this policy triumph?

Research and advocacy group Clean Energy Canada had a simple but rather brilliant idea: it asked! Last fall, it interviewed 14 key figures, including some of the plan’s political architects (like B.C.’s then-premier and then-finance minister) as well as experts from business and academia who were involved in the process.

CEC has now released a report distilling what it learned from those interviews: “How to Adopt a Winning Carbon Price.” There are 10 key takeaways. I’ll list them all, but I’m only going to dig in on a couple. See the report for more (it’s short and readable):

1. A carbon tax and a thriving economy can co-exist.
2. You need strong political leadership to get a carbon tax in place. (Public concern about climate disruption helps, too.)
3. Keep it simple: Design a policy that’s easy to administer thanks to broad coverage and minimal exemptions.
4. Commit from day one to a schedule of price increases, and stick with it.
5. Start with a low price.
6. Revenue neutrality helps address private-sector concerns and makes the policy more durable.
7. On the other hand, revenue neutrality doesn’t get you very far with voters.
8. A carbon tax can’t do everything; it needs to be just one component of a full suite of climate policies.
9. Prepare for motivated, vocal — and not necessarily fact-based — opposition. You’ll need active, engaged supporters and targeted communications strategies to counter the critics.
10. Expect a cleaner environment, an enhanced reputation, and a thriving clean technology sector.

Read the entire story @ClimateCrocks.com