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Rationale for the Citizens' Demand for a Carbon Tax in Canada
by Lynn McDonald, for JustEarth and Science for Peace
The time has come to show the federal government that many Canadians recognize that a carbon tax is a necessary part of any serious plan to reduce greenhouse gas emissions.
Of course carbon taxes won't do it all. To achieve the recommended reductions needed, 50-85% by 2050 according to the Intergovernmental Panel on Climate Change (or 94% by 2030 according to Monbiot's Heat: How to Stop the Planet from Burning), many changes in our laws and lifestyles are needed.
Common sense and a host of eminent economists tell us that a carbon tax will help. Such a tax was proposed by the National Round Table on the Environment and Economy in its recent report (www.nrtee-trnee.ca/getting-to-2050), and by the Conference Board of Canada. Quebec has already instituted a (modest) carbon tax.
People want a serious climate change action plan, not mere cosmetic schemes, "intensity" reductions or the inadequate "aspirational" goals offered so far. This is our opportunity to make it clear to the federal government that we are not naive, that we will welcome, indeed we are demanding, a carbon tax as part of a climate change strategy--for our benefit and to fulfill our obligations to the rest of the world.
A carbon tax puts a price on carbon dioxide emissions. It will encourage reduced use of fossil fuels and a shift to sustainable energy sources and energy efficiency.
Our proposal is for the tax to be "revenue neutral," that is, not to increase total tax revenues. Compensating tax breaks or tax credits will be required to ensure that low-income people do not suffer as a result of the carbon tax. The proposal in effect is to shift taxes from "goods," such as employment and income, to "bads," in this case greenhouse gas emissions from fossil fuels.
It urges a start now, with increases in amount over time. This will give people and businesses time to adapt. The tax's efficacy can be judged and adjustments made with experience.
A carbon tax can work along with many other measures to reduce our greenhouse gas emissions. It would be complementary to such mechanisms as "cap and trade" and better fuel efficiency standards. Unlike "cap and trade" a carbon tax does not give an advantage to past high emitters. Carbon taxes deal with emissions in every sector, not just major industries as in "cap and trade" schemes to date.
A carbon tax can help ensure that better fuel efficiency (which will reduce costs) does not simply result in increased use, and hence a possible rise in emissions.
Carbon taxes provide direct, transparent and understandable price signals to consumers and producers: use less oil and gas, less electricity based on coal, and move to clean, sustainable alternatives. Reduced fossil fuel burning will as well have other good consequences for the environment, such as reducing air and water pollution and the stress on forests.
The carbon tax petition promotes an important policy change, for which much background work on specifics is available. We urge the federal government to bring in a concrete plan.
www.carbontax.org
www.justearth.net
Some informative links on cap and trade:
