A new carbon levy, intended to be unveiled on Wednesday, has been ruled out by the Trudeau government as an option to raise money for the government’s ambitious climate change plan.
The Liberal government says it will stick to the $10-per-tonne tax, but the federal government is now weighing a plan to raise $10 billion in additional revenue by taxing carbon emissions at a higher rate than other countries, according to a document obtained by The Globe and Mail.
The Liberals’ policy proposal would replace the existing tax of up to $6 per tonne, which is a big increase from the current $4.60-per.tonne rate.
Under the Liberals’ proposal, carbon emissions would be taxed at a rate of $10 per tonnes by 2020.
The carbon tax would then be phased out gradually as the country’s economic growth slows.
Canada is already on track to meet the goals of its Paris climate agreement, but Trudeau said Wednesday that he has no plans to raise revenue from carbon pricing.
In a statement, Trudeau said: We will not introduce carbon pricing, and we will not reduce emissions in a way that encourages businesses to create more jobs.
“Canada’s economy has grown more than any other country in the G7 and the country is now one of the world’s largest emitters of greenhouse gases,” Trudeau said.
“We have set ambitious goals and set out a long-term vision to help the world meet its climate goals.”
The Liberals have promised to phase out carbon pricing by 2022, but critics say the carbon tax will not do enough to make up for the short-term impact that higher energy costs have had on the economy.
Trudeau said the Liberals will continue to promote climate action as part of the countrys climate strategy, and that the carbon levy will not go into force until January 2020.
Canada’s biggest carbon levy is being debated in Ottawa, where the Liberals are also debating a $10,000-per person carbon tax.
Trudeau also said Wednesday the Liberals would support the Paris climate deal if it is ratified, and pledged to “continue to work toward a carbon tax in Canada.”