A common proposal for next steps on British Columbia's carbon tax is to continue increasing the rate and use a portion of the new revenue to invest in projects that help reduce carbon pollution. One such proposal put forward to the Union of B.C. Municipalities (UBCM) convention in September 2015 calls for a return to annual $5 per tonne carbon tax increases, with new revenues invested in local climate solutions.
To understand the implications of this type of approach, the Pembina Institute commissioned Navius Research to model this scenario. Results presented in this backgrounder show that the province's economy would grow by an average of 2.1% (GDP) per year until 2030, with 850,000 new jobs created over that period, while carbon pollution would drop by 2.1 million tonnes.