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B.C. carbon tax highest in Canada, export industries unprotected

B.C. NDP, B.C. Liberals say theyB次元官网网址檙e looking at exemptions
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Rio Tinto AlcanB次元官网网址檚 aluminum smelter at Kitimat competes against producers in the Middle East and Russia that have no carbon tax. (Rio Tinto)

B.C. currently has the highest in North America, and its unique lack of protection for export industries like mining and smelting is making it more likely that new copper and steelmaking coal mines are built elsewhere, the Mining Association of B.C. warns.

B.C. currently has 14 operating mines and two smelters, the Teck smelter at Trail and the recently expanded Rio Tinto Alcan aluminum smelter at Kitimat. In a new , the mining industry notes that B.C.B次元官网网址檚 copper mines has lower emissions than ChileB次元官网网址檚, its metallurgical coal is produced with half of the greenhouse gas emissions of AustraliaB次元官网网址檚, and its aluminum is seven times less carbon-intensive than RussiaB次元官网网址檚.

That advantage is largely a result of abundant hydroelectric power, and the B.C. industry has been using it to reduce emissions further. But in a price-sensitive world market, mine investment is likely to go to countries that donB次元官网网址檛 have carbon tax. The industry calls it B次元官网网址渃arbon leakage,B次元官网网址 where a higher carbon tax costs jobs locally and produces more emissions globally.

If B.C. doesnB次元官网网址檛 offer exemptions to export industries like metal mining and production, B次元官网网址測ouB次元官网网址檒l reduce emissions in B.C. because youB次元官网网址檒l close mines,B次元官网网址 Michael Goehring, CEO of the Mining Association of B.C., said in an interview. He emphasized that the industry supports a price on carbon and isnB次元官网网址檛 asking for the B.C. carbon tax to be eliminated, just modified to match OttawaB次元官网网址檚 protections for export industries. The Canadian government and all other provincial governments have such protections, and theyB次元官网网址檙e not alone around the world.

B次元官网网址淎ll of the Northern European nations do it,B次元官网网址 Goehring said. B次元官网网址淐alifornia does it.B次元官网网址

Asked about the issue at a campaign stop in Langley Oct. 21, B.C. NDP leader John Horgan said heB次元官网网址檚 working on the exemption issue, which was first raised in B.C. as its cement makers started losing business to U.S. and China imports.

B次元官网网址淭his is an issue that weB次元官网网址檝e been working on inside of government, and if weB次元官网网址檙e re-elected on Saturday weB次元官网网址檙e going to be focusing on making sure that our traditional industries donB次元官网网址檛 suffer, in fact they benefit from our leadership on climate action,B次元官网网址 Horgan told Black Press.

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The B.C. Liberal election platform calls for industrial carbon tax exemptions, committing the party to B次元官网网址渨ork to ensure that our carbon tax system for job-creating export industries does not increase global greenhouse gas emissions by driving investment to higher-emitting jurisdictions.B次元官网网址

B.C. Liberal leader Andrew Wilkinson said the issue has to be dealt with B次元官网网址渧ery soonB次元官网网址 or B.C. will lose industry and jobs.

B次元官网网址淭his has been done in many jurisdictions around the world, and itB次元官网网址檚 high time it was dealt with in B.C.,B次元官网网址 Wilkinson said in an interview Oct. 21. B次元官网网址淲e canB次元官网网址檛 see our exports losing competitiveness against jurisdictions where there is no such tax.B次元官网网址

Most people see the carbon tax when they fuel up vehicles, with the B.C. tax currently at 8.89 cents a litre on gasoline and 10.23 cents on diesel on top of federal and provincial fuel. It also applies to natural gas, currently at 7.6 cents per cubic metre, as well as propane and industrial fuels like coal. The NDP government increased the tax from $35 to $40 per tonne of emissions in April 2019, then delayed the next increase due to the COVID-19 pandemic. It is due to rise to $45 in April 2021, moving to the federal target of $50 after that.

B.C. NDP highlights:

B次元官网网址 Reduce B.C.B次元官网网址檚 total greenhouse gas emissions by 40 per cent in 2030

B次元官网网址 Fast-track B.C.B次元官网网址檚 industrial electrification strategy for natural gas and other industries

B.C. Liberal highlights:

B次元官网网址 Work with Ottawa to review scheduled carbon tax increases in light of the COVID-19 recession

B次元官网网址 Encourage retrofitting of B.C. homes and businesses to reduce emissions

B.C. Green Party highlights:

B次元官网网址 Commit B.C. to be carbon neutral by 2045, matching California

B次元官网网址 Implement a moratorium on hydraulic fracturing for natural gas



tfletcher@blackpress.ca

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