Federal Budget Must Include a Real Price on Greenhouse Gas PollutionClimate groups challenge Ottawa to live up to B.C.'s standard

Feb. 25, 2008

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Ottawa's 2008 budget must put a real price on Canada's greenhouse gas pollution, environmental groups from the Climate Action Network Canada said today.

"Now that British Columbia has shown it can be done, Ottawa is simply out of excuses," said Emilie Moorhouse, Sierra Club Canada. "We need a real price on carbon pollution in tomorrow's budget - anything less will be a total failure for Canadians and the climate." BC's 2008 budget, released last week, introduced a tax on greenhouse gas emissions from fossil fuels that will go into effect in July and rise to $30/tonne by 2012.

An economy-wide price on greenhouse gas pollution is a crucial part of any credible climate plan for Canada. In recent months, carbon pricing has been endorsed by a growing number of Canadian academic experts, think tanks, non-governmental organizations and business groups.

Environmental groups are calling on the federal government to introduce a carbon price of at least $30/tonne in tomorrow's budget, and to increase that price to at least $75/tonne by 2020. The National Round Table on the Environment and the Economy has shown that meeting the Government of Canada's own target for 2020 will require a carbon price of about $75/tonne.

"Canada needs a massive scale up of effort in fighting climate change, and that has to start with a strong carbon price," said Matthew Bramley, Pembina Institute. "It also requires major new investments in energy efficiency and low-impact renewable energy. Right now, Canada is at the back of the class, and that has to change."

Instead of an effective price on greenhouse gases - through an absolute cap or a tax- the federal government has proposed "intensity-based" targets for heavy industry that allow greenhouse gas pollution to continue to grow. The regulation would put a price on only a small fraction of industrial emissions, and would not take effect until 2010. In contrast, British Columbia's tax will come into effect in July 2008 and will cover over 90% of emissions from fossil fuel use in the province.

"Old-style subsidies to the massively profitable fossil fuel sector and the massively un-profitable nuclear industry are no longer appropriate and simply not useful for fighting global warming. This budget is the government's opportunity to invest in real climate solutions," said Julia Langer, WWF-Canada.

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For more information, contact:

Emilie Moorhouse, Sierra Club Canada, 613-858-7021
Matthew Bramley, 819-210-6115
Julia Langer, WWF-Canada, 647-400-9579
Graham Saul, Climate Action Network Canada-Réseau action climat Canada, 613-558-3368

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