The “Myth” of saving BC’s environment with a carbon tax

Did you know that owing a forest can make you big money with BC’s carbon tax policies??  It’s true --- it’s one of the ways that business – and even government itself – can make it look as if they are doing more for the environment than they actually are.

Those who read my blog will know that I detest the Carbon Tax as a pretend policy of environmental protection.   Rather than taking money to create efficiencies with energy usage, the government instead takes the resources of the Carbon Tax and transfers them to the Pacific Carbon Trust.  And who benefits from the largesse of the Trust --- well businesses like Encanna … and now in a Globe and Mail story from Wednesday June 8^th comes this story …

North America's largest forest carbon project launches, sells $4-million in credits
The Nature Conservancy of Canada is receiving more than $4-million in what it says is the largest forest carbon project to date in North America and the first deal of its kind in Canada.  The land conservancy organization announced in Vancouver Wednesday that it has sold carbon credits that are the equivalent of 700,000 tonnes of carbon dioxide emissions.

The Nature Conservancy of Canada is receiving $4 million in carbon credits (ie this is money they receive as payment from government and businesses in exchange for NOT upgrading their own plants, facilities, etc). 

Now even some of the ‘experts’ in the field are now calling on government to reconsidering some of their actions, as noted in a couple of recent stories which follow … one from the Victoria Times Colonist --- and a second from the New York Times …

Les Leyne: Clark gets way out of cap-and-trade plan (Times Colonist – June 11, 2011)

The professor who supplied a lot of the intellectual horsepower behind the Liberals' war on climate change changed gears this week.  Simon Fraser University carbon pricing expert Mark Jaccard is now advocating that B.C. hold off on joining California's cap-and-trade program next year.

Environment Minister Terry Lake has made some vague references to staying the course and carrying on with the idea of joining the California market.

Jaccard now recommends against that. He views the B.C. government from the outside now, as he is more focused on U.S. energy issues.

Behind the questions about cap and trade is a bigger question about the target that program was designed to meet.  B.C. is obligated by law to cut greenhouse gas emissions by one third by 2020. The business group warned the government it can't do that without dramatic reductions in production and employment in several big export industries.

Clark has made it clear she wants as many jobs as can be wrung out of those industries. And she's already slapped a tax hike on them as part of the harmonized sales tax rescue mission.

California Revises Its Greenhouse Gas Analysis  (New York  Times -- June 14^th, 2011)    

Nothing focuses the mind like being told by a thesis adviser (or a judge) that your analysis is inadequate and that your degree (or your carefully constructed policy for reducing greenhouse gas emissions) will be on hold until you provide a better one.

The staff’s final judgment was that a market-based approach easily outdistanced a direct emissions tax or fee. Even the unpopular option of direct regulation of refineries or power plants or other major emitters penciled out better than the carbon tax in the new analysis of the regulatory board.

All of that aside … I am interested in knowing what if anything has been accomplished, in reducing the carbon footprint in British Columbia, by imposing additional taxes on the people of BC – that after all was supposed to be the goal of having the Carbon Tax – wasn’t it?

BC Ministry of Finance

It's estimated that B.C.'s carbon tax will save up to three million tonnes of CO2 emissions annually, which is equal to taking almost 800,000 cars off the road each year. The tax on carbon emission is a critical component of B.C.’s Climate Action Plan to reduce greenhouse gas emissions by 33 per cent by 2020.

B.C. budget hikes fuel costs with new carbon tax   (CBC News – Feb 19th, 2008)
As part of the new tax plan, carbon-based fuels — including gasoline, diesel, natural gas, propane, coal and home heating fuel — will be taxed at $10 per tonne of greenhouse gases generated, starting July 1, 2008.   That will translate into a new 2.4 cents per litre tax on gasoline at the pump and 2.8 cents per litre for home heating fuel.  The carbon tax rate will rise by $5 a year for the next four years, until it hits $30 per tonne of greenhouse gas generated in 2012, said Taylor.

"The principle is simple," said Taylor. "Tax carbon-emitting fuels to discourage their use, and give the money back to people, back to businesses, so they have control. They can make their own choices about how the tax affects them."

Carbon Neutral Government -- from Live Smart BC   

The B.C. Government is setting an example and working to ensure that its operations are carbon neutral for 2010 and every year thereafter. This commitment – enshrined in the Greenhouse Gas Reduction Targets Act – is the first of its kind in North America. It applies to all provincial public sector operations, including government ministries and agencies, schools, colleges, universities, health authorities and Crown corporations.

Myths and Facts About the Carbon Tax (Ministry of Finance)

Myth: Many people have no alternatives and no way to reduce their emissions

Fact: Business and individuals can choose to reduce their carbon tax by reducing usage, increasing efficiency, changing fuels, adopting new technology or any combination of these approaches. We can all begin to make the small changes towards a cleaner future that fit into our own individual circumstances, such as choosing energy efficient lights, lowering the temperature on the thermostat at night, or keeping our cars tuned-up. Simply driving 10 km less per week will more than offset the cost of the carbon tax for most British Columbians.

I for one however am still waiting for results showing that the carbon footprint has been reduced in BC since the implementation of the Carbon Tax in 2008.  I have posed and asked the question several times in this blog, as well as in the media, however I have yet to see or hear a response.

I saved this for last, but in case you were wondering about how the carbon tax affects the prices of gas – that BC residents living in the interior need and require to get around – have a look at the following two items:

Carbon Tax on per liter cost of Gasoline  

2009 = 3.33 cents            2010 = 4.45 cents            2011 = 5.56 cents            2012 = 6.67 cents / liter

BC Drivers Pay Highest Gas Taxes in Canada (Canadian Taxpayers Federation – May 26, 2011)

VANCOUVER, BC: The Canadian Taxpayers Federation (CTF) is holding its 13th annual Gas Tax Honesty Day to inform Canadians about the amount of taxes they pay at the pumps and to hold governments accountable for those dollars.  "Politicians don't like to admit that taxes account for nearly one-third of the price of gas. And that does not include provincial royalties on crude oil and it does not include business taxes paid by the oil companies," Thomas added.

In concluding, I would like to point out that the BC Conservative Party has committed to scrap this tax:

Conservative leader Cummins vows to scrap carbon tax  (Globe and Mail – May 28, 2011)

John Cummins, confirmed Saturday as BC Conservative leader, is promising to scrap the carbon tax if he becomes the province’s next premier.  The promise came in a fiery speech as the former Tory MP, transitioning into provincial politics, cast the BC Conservatives as an alternative to the governing BC Liberals and opposition New Democrats.

Mr. Cummins, speaking to about 200 supporters at a Surrey hotel, said axing the tax would mean cheaper gas, more funding for schools who would not have to pay the tax and a relief for rural British Columbians who don’t have public transit.

In Kamloops, I’m Alan Forseth … with the thoughts of one conservative.