As the federal government faces increasing political pressure to halt a planned increase to its consumer carbon tax, a new report shows industrial carbon pricing has three times the impact on greenhouse gas emissions as the consumer tax.Flares burn off methane and other hydrocarbons at an oil and gas facility in Lenorah, Texas on Friday, Oct. 15, 2021. A new report shows that industrial carbon pricing is three times as effective in cutting greenhouse gas emissions as the consumer carbon levy.
Much of the debate over carbon pricing centres on what many call the carbon tax, the consumer version of the national price on carbon. The report shows the pricing policy for large emitters accounts for most of the projected emissions cuts.Carbon tax change has Canadians asking about the program. Here's how it's supposed to work
In other words, the industrial carbon price is driving three times the emissions reductions attributed to the consumer carbon price, said Dale Beugin, executive vice-president of the Canadian Climate Institute. "Our analysis suggests that all the policies that we have, if we implement everything in the pipe ... we are still going to be just shy," Beugin said.Canadian Climate Institute analysis shows that Canada is on track to meet up to 90 per cent of its 2030 emissions target of 400 megatonnes or less.