The federal government has rejected a request from Saskatchewan to use a provincial carbon pricing plan.
Saskatchewan premier Scott Moe has opposed the federal carbon price, feeling it puts a strain on an uncompetitive economy in Saskatchewan. In a statement released by the premier, Moe states “The rejection of Saskatchewan’s submission can only be viewed as an arbitrary and political decision from the federal government.”
Moe also indicated that the federal government will not accept any further submissions of a carbon pricing plan until 2023.
The Saskatchewan rejection contrasts with the carbon pricing plan approved in New Brunswick, which provides reduced fuel prices in exchange for a carbon tax.
The move shows the Canadian governments commitment to uniting carbon taxes across the whole country, rather than letting provinces decide how they should implement carbon measures. The federal government mentioned a benchmark carbon price is in the works and could be implemented as early as January 2023.
Minister of Environment and Climate Change Jonathan Wilkinson did mention previously that the new benchmark would eliminate any rebates or cuts offsetting the carbon tax.
Canada aims to be carbon neutral by 2050, they have also been tasked by the UN to reduce emissions from 40-45% by 2030. A change in carbon pricing methods could eliminate any discrepancies and help Canada reach their Net-Zero goals.
