Carbon price rises to $50 a ton

The national price on pollution increases another $10 a tonne of greenhouse gas emissions as expected Friday in several provinces.

Environment Minister Steven Guilbeault is resisting political pressure to delay or cancel the increase as fuel prices rise due mainly to the Russian invasion of Ukraine.

Guilbeault says the government is not going to slow down or back down on its climate action plan, of which pricing carbon is seen as a cornerstone.

Friday’s increase brings the total price to $50 a ton, adding another 2.2 cents to the cost of a liter of gasoline, or 11 cents in total.

The federal levy applies directly in Alberta, Saskatchewan, Manitoba and Ontario, but British Columbia, New Brunswick and Prince Edward Island are also increasing their provincial carbon levies.

Quebec and Nova Scotia use cap and trade systems and Newfoundland and Labrador will increase its price to $50 per tonne later in 2022.

The price in British Columbia goes from $45 to $50. In New Brunswick, it goes from $40 to $50 and in Prince Edward Island, which has not increased its levy since 2020, from $30 to $50.

The federal government recently announced carbon price rebate amounts for the coming year, which for the first time will be paid in installments rather than all at once.

Only the four provinces directly involved in the federal system receive the rebates, which aim to prevent families from suffering financially for paying the carbon price while encouraging them to save more by using less greenhouse gas-emitting fuel.

Payments vary from province to province depending on the amount of fossil fuel used and range from a low of $745 this year in Ontario to $1,101 in Saskatchewan.

For the first time, these checks will be distributed throughout the year instead of a single installment, with a double installment in July this year and quarterly installments in October and January.

Other provinces have various revenue plans, including tax credits, gas tax rebates, climate action grants, or a combination of these.

The Conservatives introduced a motion last month calling on the Liberals to delay or cancel the planned April 1 hike because gas prices have already risen so much.

Several leadership candidates are going along the same lines, promising to scrap carbon pricing altogether if they win and then form government after the next election.

According to the Canadian Automobile Association, the average national gasoline price as of March 31 was $1.72 per liter, up from $1.22 per liter on April 1, 2021.

It peaked at $1.85 per liter on March 11. Until today, the carbon price was 8.8 cents.

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