The tax affects all industries excluding food and cannabis greenhouses (rightfully so).
When it comes to Canada’s carbon tax law, we think about the two main components: a) The carbon levy placed on fuel purchases, and, b) A program for large emitters of industrial facilities.
The purpose of implementing carbon tax in Canada was to establish a carbon pricing system for provinces that do not possess an adequate pricing model. This meant that for provinces like Ontario, Manitoba, Saskatchewan, and Alberta, a tax that began at $20/tonne in 2019 will rise $10 each year - ultimately reaching $50/tonne by the year 2022.
With that said, there is a goal in place for Canada (among 194 other countries) to reach our obligation to the Paris Agreement established in 2015 - an agreement which aims to significantly limit the global average temperature rise and achieve carbon pollution levels that are 30% below 2005 levels by 2030.
Does this seem like an attainable goal? As a country, we can hope.
In December 2020, Canadian Prime Minister Justin Trudeau announced a gradual hike in federal carbon tax to $170/tonne by the year 2030.
At the federal level, carbon pricing is revenue-neutral since the bulk is returned to households and businesses, with a portion of the tax used for funding energy conservation and efficiency programs.
If one thing’s for certain, it’s that Canadian provinces decide how to implement carbon pricing - which is subject to a minimum amount established by federal government.
For example, with provinces Ontario, Manitoba, Saskatchewan & Alberta choosing not to meet the standard, it results in the bulk of the money being returned to residents and some to municipalities/businesses.
The benefits of pricing pollution in Canada
Pricing pollution not only helps businesses gain a competitive edge regarding low carbon economy, but it also helps consumers to save money over the long-term through the improvement of energy efficiency. Not to mention, the transition to a lower carbon economy will also be marked by higher resilience, more innovation, more livable cities and a more robust agriculture.
T&T Power Group can add value to any and all of your energy needs.
At T&T Power, our team provides a wide array of power solutions including Emergency Power, Prime Power, CHP (Combined Heat and Power), Automation Panels, Controls, VFDs and sustainability initiatives to help you on your power saving journey. We even offer a free online CHP calculator to help you understand the impact that carbon tax will have on CHP projects - and the results might surprise you.
The goal of every Canadian power customer is to save money, maximize efficiencies and ultimately, reduce their carbon footprint for a greener tomorrow - and T&T Power can help you achieve this. Contact our team of experts today to get started.