Federal gov't approves Saskatchewan-run provincial carbon pricing plan
CBC
On Tuesday, the Canadian government announced changes in carbon pricing across the country.
One of them is that the federal plan to cut pollution from large emitters will no longer apply in Saskatchewan, making way for a provincially led plan.
In a news release Tuesday morning, the province said that the Saskatchewan Output-Based Performance Standards (OBPS) program meets the requirements for the 2023-2030 federal carbon pricing benchmark.
All industrial carbon taxes will now stay in Saskatchewan, effective Jan. 1, 2023. The province says this will save Saskatchewan industry an estimated $3.7 billion in federal carbon taxes between now and 2030, compared to federal carbon pricing.
Until now, Ottawa's system called for caps on carbon emissions. Big industrial emitters would then have to pay penalties if they exceed the caps.
Saskatchewan has been pushing for its own plan to reduce industrial emissions, based on the idea of reducing the intensity of carbon emissions and giving businesses various ways to get to the targets. The province has indicated that it would not have caps on emissions, but would utilize other incentive tools instead.
Regulated emitters will have the option to pay into the Saskatchewan Technology Fund, which will create incentives for industry to develop and implement technologies that reduce greenhouse gas emissions.
The province says the number of facilities in Saskatchewan's OBPS program is expected to double by 2030.
Regulated emitters will receive credit for every tonne of carbon less than their permitted amount that they emit.
Saskatchewan's Minister of Environment Dana Skoropad told reporters Tuesday afternoon that the provincial program still has to match the federal government's carbon pricing system.
"There's a few aspects to this program that we need to play within the rules. Certainly being that we respect the carbon pricing that's in place and federally imposed," said Skoropad.
"We also need to take on natural gas transmission pipelines and take on electricity production in the province as well. And we need to maintain that pricing signal as a part of the the program that we proposed."
Skoropad said he believes large emitters will work hard to meet emission goals, while also being innovative.
"[OBPS] is an individualized program that that really allows the good work that our industries have done already to be recognized and then continue to grow."
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