Shortcomings in the draft recommendations for the Western Climate Initiative’s (WCI) cap-and-trade system must be addressed or they will undermine the system’s effectiveness when action on climate change is most needed, according to the David Suzuki Foundation and the Pembina Institute.
“The WCI represents a significant opportunity to spur investment in innovative solutions to reduce global warming emissions in North America, but the recommendations, if implemented in their current form, would do little to develop clean energy and reduce emissions,” said Ian Bruce, a climate change specialist with the David Suzuki Foundation. “The good news is that these regulations aren’t final yet, so British Columbia has an opportunity to show leadership by strengthening these proposals ahead of the WCI’s September deadline.”
“The best scientific advice is clear that a delay or a weak approach only increases the risks of intensified global warming. We don’t have the luxury of getting what could be a major blueprint for North American action on global warming wrong from the outset,” said Mr. Bruce.
The David Suzuki Foundation and the Pembina Institute, along with the Climate Action Network Canada, Manitoba Wildlands and WWF–Canada, submitted comments to the WCI detailing these concerns and offering potential solutions. The public-comment period on the draft recommendations was the last official opportunity to offer feedback in advance of the WCI’s final recommendations, which are expected in mid-September.
The key concerns expressed in the submission are
- a lack of urgency in the implementation timeline that would see a four- to seven-year delay for the program to launch;
- a lack of stringency in the initial cap that could potentially allow emissions to increase between now and when the system is operational;
- an insufficient commitment to auctioned pollution permits and the polluter-pays principle that opens the door to windfall profits and unfair price increases;
- insufficient limits on the quantity of offsets that could water down the responsibility of industry and other capped sectors to reduce their own emissions, especially in early years.
The problems with the draft design can be resolved, and B.C. should play a leadership role with its WCI partners to ensure that the system starts off on the right foot. In addition, B.C. has a clear opportunity to broaden its carbon tax to include the one third of industrial emissions currently exempted. This would demonstrate to the other WCI jurisdiction that it’s possible to put an economy-wide price on carbon in a timely manner, one of the key policies needed for effective action.
“Whether it’s the lack of urgency in the recommendations or loopholes that could weaken the cap on emissions, a number of aspects require significant improvement. Thankfully, there are just as many solutions as there are problems,” said Matt Horne, acting director of B.C. Energy Solutions for the Pembina Institute. “British Columbia needs to show leadership by working with its WCI partners to address as many of these concerns as possible in the next month. British Columbia should also commit to broadening its carbon tax to give a textbook example of economy-wide carbon pricing for other WCI members to follow.”
The recommendations submitted to the WCI are available here.
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For more information:
Ian Bruce
Climate Change Specialist, David Suzuki Foundation
Cell: 604-306-5095
Matt Horne
Acting Director, BC Energy Solutions, Pembina Institute
Cell: 778-235-1476