Latest news with #OBPS
CBC
01-04-2025
- Business
- CBC
Saskatchewan is now carbon tax free, but some wonder the cost
Saskatchewan industrial carbon pricing system is set to end Tuesday, but the province has so far been unable to provide a clear answer on the financial consequences of the decision. Saskatchewan's system is known as the Output-Based Performance Standards (OBPS) program and taxes large industrial emitters. NDP finance critic Trent Wotherspoon says the $12-million surplus projected in the province's 2025-2026 budget is now gone and the document "isn't worth the paper it was printed on." In its 2025-2026 budget, the province projected $431 million in revenue from its OBPS program. With that program paused, the state of the province's finances are unclear. "Twelve minus 432 does not equal balance," Wotherspoon said on Monday. End of the industrial carbon tax Saskatchewan Premier Scott Moe is touting Tuesday as " Carbon Tax Freedom Day." While all of Canada is marking the end of the federal price on consumer carbon on April 1, Saskatchewan made the additional decision to end its industrial carbon pricing on the same date. "The people of the province, our governments have been very vocal from the start, being opposed to the carbon tax. So we were thrilled to have the opportunity to do what we did last week," Saskatchewan Finance Minister Jim Reiter said on Monday. Moe and the Saskatchewan Party have been quick to share statements from organizations celebrating the end of the OBPS program. Daryl Fransoo, the chair of the Wheat Growers Association, described farmers as the backbone of the province's economy and said they have been hit hard by trade disruptions and tariffs. "This decision puts money back into farmers pockets," Fransoo said. Other organizations like the Saskatchewan Farm Stewardship Association, Mosaic Canada, the Saskatchewan Heavy Construction Association and the Saskatchewan Association of Rural Municipalities have also released statements endorsing the decision. WATCH| Sask. Premier Scott Moe to pause industrial carbon tax: Sask. Premier Scott Moe to pause industrial carbon tax 5 days ago Duration 3:10 The decision has not come without criticism. Brett Dolter, an associate professor of economics at the University of Regina, told CBC News last week that the decision eliminates two of the three pillars central to the 2017 Saskatchewan climate change strategy, entitled Prairie Resilience. With the end of the industrial carbon emissions tax and the decision to extend the lives of its coal-fired power plants, moving away from clean electricity goals, Dolter said the province is steering away from reducing its emissions. The province's decision also doesn't end the ability for the federal government to implement its own industrial carbon pricing or "backstop." Financial impact Since Moe announced the policy change last week, no one from the government has been able to provide a clear answer on the financial impacts of the decision. Moe refused to provide a yes or no answer when asked whether the move puts Saskatchewan in a deficit. Reiter also wouldn't provide a yes or no response. "The fact is that on any given day commodity prices rise and and fall. It all has an impact on the budget. So we're not going to rewrite the budget every time something like that happens," Reiter said. Reiter stuck to his answer when it was pointed out that he was describing market factors and not a decision made by the provincial government. Wotherspoon said the lack of clarity is infuriating. "Whether or not he's just incompetent or he's not being honest with Saskatchewan people, he has to know that what he's presented to Saskatchewan people is not only nonsense, but also that it fails to step up to the challenges that they face," Wotherspoon said.
CBC
28-03-2025
- Business
- CBC
Saskatchewan's vow to axe industrial carbon tax tests climate targets during federal election
Saskatchewan Premier Scott Moe's promise to eliminate the industrial carbon tax, and move away from the province's own climate plans, opens the door to a potential federal election issue. Late Wednesday, Moe announced the Saskatchewan government would eliminate its provincial industrial carbon tax, known as the Output-Based Performance Standards (OBPS) program, on April 1. Implementing the change alongside the federal government's plan to cut the consumer carbon tax the same day, Moe said Saskatchewan would be a carbon-tax free province. If removed, the federal government could impose a federal industrial carbon tax in its place, something University of Alberta economics and law Prof. Andrew Leach does not expect the 'caretaker' government in place for the election to do. During an election period, a convention of the government functions in its place until a new government is sworn in or an incumbent is re-elected. Leach said the federal government has the jurisdiction to impose carbon pricing, but it's a political decision. "There's almost no chance that the federal government is going to do that now," he told CBC's Alexander Quon. "That would probably go, I would think, beyond your caretaker convention during a federal election; but, more importantly, I don't think that Mr. Carney's going to want to shift the ballot question to that right now." Ditching industrial tax is abandoning climate goals: economist Brett Dolter, an associate professor of economics at the University of Regina, sees Saskatchewan's divergence from the industrial carbon tax as knocking down the second of three pillars in the province's climate change plan. In December 2017, Saskatchewan launched its climate change strategy, entitled Prairie Resilience. For Dolter, there are three main pillars to that plan: methane capture, its industrial carbon emissions tax and cleaner electricity production. By cutting the tax, one is knocked down. Dolter also sees another tumbling. Earlier this year, the Saskatchewan government directed SaskPower to create a plan for power generation that could include extending the lives of its coal-fired power plants. That's among the issues affecting its electricity goals, he said. Without the emissions tax, operating those power plants would be a lot more affordable, Dolter said. He said running coal power plants is going to steer the province away from its goal of reducing its emission production from its electricity generation by 40 per cent. "It's starting to look like Prairie Resilience is more like prairie obstinance. We're just getting climate policy out of the picture here in Saskatchewan," he said.
CBC
27-03-2025
- Business
- CBC
Saskatchewan government to eliminate industrial carbon tax on April 1
Premier Scott Moe is pausing Saskatchewan's industrial carbon tax. The decision targets the carbon tax rate under the Output-Based Performance Standards (OBPS) program, which taxes large industrial emitters. The pause will go into effect on April 1. "We have always stood from day one against this tax," said Premier Scott Moe on Thursday. "We don't think it is in any way an environmental tax, but ultimately is preventing investment and enhancing the inflationary costs that we are experiencing as Canadians." The province said the pause will save families and businesses in the province hundreds of dollars a year. On March 14, Prime Minister Mark Carney announced the separate consumer carbon tax will also be eliminated on April 1. The two policy changes will make Saskatchewan the first province in Canada to fully remove any carbon tax, the province's statement said. The tax pause will complicate the Saskatchewan government's budget projections. In its latest provincial budget, the government projected a $12-million surplus, but that included an estimated $431 million in revenue generated by the OBPS program. "We're gonna have those details in the days ahead," Moe said Thursday when asked at a news conference whether the decision will put the province in a deficit. WATCH | Sask. Premier Scott Moe to pause industrial carbon tax: Sask. Premier Scott Moe to pause industrial carbon tax 22 minutes ago Duration 3:10 On why consultations on the budget impact didn't happen before the announcement, Moe said his government is "taking our cue from the federal leaders as they start to back up on this policy." In a statement, Saskatchewan Opposition NDP leader Carla Beck approved of the removal, but criticized the budget impacts. "We need to make sure our province isn't left behind at a time when we're facing tariffs and chaos in the global economy," she said.
CBC
27-03-2025
- Business
- CBC
Sask. Premier Scott Moe to pause industrial carbon tax
Premier Scott Moe is pausing Saskatchewan's industrial carbon tax. The decision targets the carbon tax rate under the Output-Based Performance Standards (OBPS) program, which taxes large industrial emitters. The pause will go into effect on April 1.
Associated Press
21-03-2025
- Business
- Associated Press
Federal industrial carbon pricing delivers 38 new innovative and clean technology projects across Canada
GATINEAU, QC, March 21, 2025 /CNW/ - The Government of Canada is taking bold action to strengthen communities by addressing the impacts of climate change. Industrial carbon pricing is a foundational element of Canada's plan to protect the environment and build a strong, competitive, and sovereign 21st-century Canadian economy. Today, the Honourable Terry Duguid, Minister of Environment and Climate Change, announced investments of nearly $150 million from Canada's Output-Based Pricing System (OBPS) Proceeds Fund in 38 Decarbonization Incentive Program (DIP) projects in the four provinces where the federal OBPS applied in 2019 to current. This funding will help Canadian companies and organizations deploy cutting-edge clean technologies which cut pollution, enhance energy efficiency, create jobs, and strengthen Canada's economic footing. Today's investments will support a range of initiatives, such as replacing expensive oil- and gas-fired boilers with more efficient electric ones, producing cleaner and stronger Canadian fibreglass, deploying advanced carbon-management technologies, and enhancing the durability of galvanized steel sheets, all of which help drive down costs for Canadian manufacturers and consumers across the supply chain. Projects funded by the Proceeds Fund will also help unlock new opportunities and markets for made-in-Canada clean technology and innovation, strengthening the Canadian economy while reducing an estimated 544,100 tonnes of greenhouse gas pollution in the year 2030. The federal government recognizes the leadership role that industries and workers play in driving solutions to build a more competitive economy and protect the environment. Through partnerships with workers, industries, experts, enterprises, and Indigenous leaders, industrial carbon pricing supports projects that fight climate change and strengthen our economic security. Quotes 'Canada has everything it takes to be a leader in the low-carbon economy of the 21st century. At a time when we must strategically diversify our trade relationships, industrial carbon pricing is a key driver in protecting the international competitiveness of Canadian industries, enabling access to new export markets, creating good-paying jobs, and ensuring that major industrial polluters pay their fair share in clean technology investments across Canada. These investments are a win-win-win for Canadian workers, industries, and the environment. Fundamentally, industrial carbon pricing makes Canada stronger and more competitive in a changing world.' – The Honourable Terry Duguid, Minister of Environment and Climate Change 'Today, Canada is making significant investments that will not only strengthen our economy at a critical time but will also help protect our environment for future generations. Through the Output-Based Pricing System Proceeds Fund, this federal government is empowering Canadian companies to innovate, adopt cutting-edge technologies, improve their competitiveness and productivity, and reduce pollution. By supporting projects that drive efficiency and lower pollution, we are unlocking new economic opportunities, creating jobs, and positioning Canada as a global leader in the economy of today and tomorrow.' – The Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources 'Canada is on track for a more competitive, resilient, and sustainable future. These investments will not only fuel innovation among Canadian cleantech companies but will also create made-in-Canada opportunities that drive growth and reduce greenhouse gas emissions. By working in tandem with key sectors to deploy industrial carbon pricing, we are seizing the opportunity for Canada to lead the global transition to a low-carbon economy, strengthening our country today and in the future.' – The Honourable Anita Anand, Minister of Innovation, Science and Industry 'The University of Toronto is the world's most sustainable university and is a global leader in transforming its infrastructure and operations to reduce carbon emissions. The Decarbonizing Incentive Program supports the modernization of the university's district energy system, ensuring that the energy that powers advanced research is clean and sustainable for decades to come.' – Ron Saporta, Chief Operating Officer, University of Toronto 'Funded in part through the Decarbonization Incentive Program, a new heat plant currently in the planning stages at Roseburg Forest Product's Pembroke facility would reduce greenhouse gas emissions by switching from natural gas to forest biomass to fuel manufacturing of our high-quality, medium-density fibreboard (MDF) and engineered wood products. Environment and Climate Change Canada's focus on supporting clean, sustainable growth through the OBPS Decarbonization Incentive Program aligns with Roseburg's longstanding commitment to innovative manufacturing and responsible forestry, and we're grateful for the support.' – Alexandre Ouellette, Senior Director of Manufacturing, Roseburg Forest Products Quick facts Proceeds from industrial carbon pricing are driving innovative, job-creating Canadian technology projects across regions and sectors. To date, the Decarbonization Incentive Program has supported total investments of over $874 million in 53 clean energy projects. Canada's emissions are now the lowest they have been in 27 years, excluding the pandemic years, and significantly lower than pre-pandemic levels. Between 2005 and 2023, the emissions intensity of Canada's economy was cut by 34%. All proceeds collected under the federal OBPS are returned to the jurisdiction of origin. Proceeds collected in jurisdictions where the federal system has been applied are being returned through the two program streams of the OBPS Proceeds Fund. The jurisdictions where the federal OBPS has applied previously, or continues to apply, are: Manitoba (federal OBPS continues to be in effect and proceeds continue to be collected) New Brunswick (federal OBPS was in effect and proceeds were collected until December 31, 2020) Ontario (federal OBPS was in effect and proceeds were collected until December 31, 2021) Saskatchewan (federal OBPS was in effect and proceeds were collected until December 31, 2023) Through the Decarbonization Incentive Program, the Government of Canada returns a portion of the proceeds collected from the federal pollution price on large industrial emitters to support innovative, clean technology projects across Canada back to their jurisdictions of origin. This funding enables eligible facilities to achieve greater energy efficiency, adopt sustainable solutions, and reduce pollution.
