Maintaining a strong economy while moving ahead with climate policy

Matt Horne – Pembina Institute

Nancy Olewiler – Simon Fraser University

Nicholas Rivers – University of Ottawa

Dale Beugin – Canada’s Ecofiscal Commission

March 17th

We are very grateful for support from:

Outline Introduction & overview of CLP process / CLT recommendations

-- Matt Horne, Pembina Institute

Additional perspective on CLP/CLT-- Nancy Olewiler, SFU

Environmental and economic evidence from B.C.’s carbon tax-- Nicholas Rivers, University of Ottawa

CLT recommendations for emissions-intensive, trade-exposed sectors-- Nancy Olewiler, SFU

Provincial carbon pricing and competitiveness pressures-- Dale Beugin, Canada’s Ecofiscal Commission

Q&A

MandateProvide recommendations that:

Achieve BC’s climate targets

Maintain a strong economy

Mitigate impacts on vulnerable populations

Fiscal policy recommendations• Increase the carbon tax by $10 / tonne / year • Expand the carbon tax coverage• Use incremental carbon tax revenues to:

• Reduce the PST • Increase protection for low-income and northern/rural

households• Establish targeted measures to protected emissions-

intensive, trade-exposed sectors• Establish mechanisms that facilitate investments in

technology and innovation and provide local governments with funding for projects

Fiscal policy recommendations

Government commits to

2018 & 2021 carbon tax next steps

New schedule of carbon tax increases

starts.

Carbon tax coverage expands

Team’s recs provided to government

5-year review in carbon tax

2015 2016 2018 2021 2023

New carbon tax revenues matched with expenditures on tax cuts/credits, EITE measures, investments, etc.

6

7

8

9

Emissions-intensive, trade-exposed sectors and the Climate Leadership Team’s recommendations

Vulnerability for BC industries

Scale of provincial competitiveness pressures

And with a higher carbon tax?

BC AB SK MB ON QC NS ROC Canada0%

5%

10%

15%

20%

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30%

$30 $60 $90 $120

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Learn more and engage

Comments to BC government until March 25th at: engage.gov.bc.ca/climateleadership/

Climate Leadership Team recommendations summary: pembina.org/pub/bc-climate-leadership-team-process-and-recommendations

Pembina’s Climate Leadership Plan submission: pembina.org/pub/bc-climate-leadership-plan-submission-phase-2-consultation

Business carbon tax letter pembina.org/bc-carbon-tax

Thank youMatt Horne @HorneMatt

Nancy Olewilerolewiler@sfu.ca

Nicholas Rivers@riversNic

Dale Beugin@dalebeugin

We are very grateful for support from: