Page 9 - NorthAmOil Week 50 2020

NorthAmOil COMMENTARY NorthAmOil

Trudeau steps up

decarbonisation efforts

Canadian Prime Minister Justin Trudeau has unveiled a

decarbonisation plan that will see the carbon tax gradually rise

over the coming decade, with implications for the oil industry

CANADA CANADIAN Prime Minister Justin Trudeau has continue until it hits CAD170 ($134) per tonne.
stepped up his decarbonisation push, unveiling This marks the first time a Canadian government
WHAT: a strategy that includes a gradual increase in the has set out a formal path to achieving a commit-
Trudeau has unveiled country’s carbon tax over the coming decade. ment to cut GHG emissions.
a plan that involves His plan, which is aimed at helping Canada to “This is a day on which I think Canadians
a gradual increase in meet its 2030 greenhouse gas (GHG) emissions should be proud,” Canadian Minister of Envi-
the carbon tax over the target after missing previous ones, centres on the ronment Jonathan Wilkinson told CBC News
coming years. country’s carbon tax increasing by CAD15 ($12) on December 11. “Because this is the first time
per tonne per year between 2023 and 2030. Canada’s ever had a plan that is being proposed
WHY: The plan seeks to put Canada on track to cut that shows how we will not only meet, but we
The plan is aimed at GHG emissions by around 40% below 2005 will exceed the targets to which we have com-
helping Canada to meet levels by 2030, which would go further than mitted internationally.”
its 2030 emissions target its Paris Agreement target of 30% by the same The move comes after Ottawa was recently
after missing previous year. But there is opposition to the plan, with oil criticised by environmental groups and those
ones. production leader Alberta saying it would chal- promoting increased action on climate change
lenge the tax hikes in court, and the premier of for not doing enough. In mid-November,
WHAT NEXT: Ontario describing the move as a “green scam”. Trudeau’s Liberal government unveiled meas-
The new target Regardless of how successful Alberta’s chal- ures that were intended to represent a tough-
complicates the Canadian lenge is, the new target appears set to complicate ening stance on climate change as the country
oil industry’s recovery. the path forward for the province, which was hit seeks to achieve net-zero emissions by 2050. But
hard by the oil price downturn this year. the proposal was vague on details and lacked
any kind of enforcement mechanism, leading
A path forward to Green Party leader Annamie Paul dismissing
The current carbon tax is CAD30 ($24) per it as “more smoke and mirrors”.
tonne and under the plan the price hikes would Last week’s plan thus goes a step further by

Canadian Prime
Minister Justin Trudeau
is trying to take a
tougher stance on
decarbonisation.

Week 50 17•December•2020 www. NEWSBASE .com P9